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Ukraine to get $1.2 billion from World Bank

The latest loan brings the total in ‘emergency financing’ Kiev has been lent or promised to more than $38 billion

Ukraine will receive a $1.2 billion loan from the World Bank which is being guaranteed by the government of Japan, the lender reported.

The money will be used to support 29 social aid programs for “the most vulnerable people in Ukraine” under a project to invest in Social Protection for Inclusion, Resilience, and Efficiency (INSPIRE).The project is “an integral part of the international support package for Ukraine to meet its financing needs through 2024,” according to the World Bank.

With today’s announcement, the World Bank has now facilitated over $38 billion in emergency financing to support Ukraine, including commitments and pledges from lenders including: the US, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Iceland, Ireland, Indonesia, Lithuania, Latvia, Belgium and the Republic of Korea.

The money to be lent by the World Bank came in line with Kiev’s expectations. Earlier in November, Ukrainian Prime Minister Denis Shmigal said it expected to obtain $1.1 billion from the World Bank. He added that the country also hopes to get €162 million ($177 million) in financial support from the European Investment Bank as part of programs to restore Ukraine, while $190 million and $70 million would be allocated by Norway and Switzerland, respectively.

EU military aid for Ukraine had reached €27 billion euros (some $28.8 billion) since the beginning of the conflict and is constantly growing, marking a record high in the bloc’s history. Military assistance has included ammunition, air defense systems and tanks, Ukrinform news agency reported last month.

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Ukraine reveals size of latest World Bank loan

Earlier in November, in a bid to ease the mounting financial pressures confronted by Ukraine, President Vladimir Zelensky made an appeal to Western supporters for urgent financial help. Expressing his concerns regarding the nation’s economic stability, Zelensky stressed the need for immediate support to enhance the country’s financial resilience. “If you can’t support us financially, please give us a loan and we’ll pay you back,” Zelensky said. According to the World Bank, Ukraine’s economy is likely to grow by 3.5% this year after contracting by 29.1% in 2022.

Ukraine’s repeated calls for more money and weapons have only become louder and longer since the start of the conflict, with some voicing worries that the country’s supporters are getting tired of helping.

In October, billionaire Elon Musk who provided Ukraine with Starlink satellite services mocked Ukraine’s President Vladimir Zelensky, using a meme to scoff at the president’s calls for more Western aid. “When it’s been 5 min and you haven’t asked for a billion dollars in aid,” read Musk’s message.

December 01, 2023 at 12:13PM

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