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Ukraine receives $1.5bn through World Bank mechanism as guarantees from UK, Japan

The loan was granted due to Ukraine's fulfilment of the requirements. 

Ukraine receives $1.5bn through World Bank mechanism as guarantees from UK, Japan

Ukraine has received $1.5 billion through the World Bank. This is a loan to support the Growth Fundamentals development policy from Japan and the United Kingdom, the Ministry of Finance said.

Most of the funds - $984 million - are guarantees from the Japanese government through the World Bank's Advance Ukraine trust fund. Another 516 million is a guarantee from the UK.

The state budget of Ukraine received $1.4 billion. To reduce the cost of servicing the loan, it was decided to capitalise interest from Japanese funds in the amount of 99.5 million.

Ukraine was able to receive the tranche due to the fulfilment of the eight necessary requirements of the programme. In particular, the Government of Ukraine is committed to harmonising its customs legislation with the EU and improving its fiscal policy.

"The effective work of the Government, together with timely support from our partners, allows us to maintain the stability of the financial system, even in the face of full-scale aggression and daily terror by the Russian Federation. I am grateful to Japan, the United Kingdom and the World Bank team, who have been standing side by side with Ukraine since February 2022. The financing will be used to support the key priorities of the state budget," said Finance Minister Serhiy Marchenko. 

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