1. Main
  2. Learn
  3. Economy
  4. Finance

World Bank to provide up to $2 bn in aid to Ukraine

World Bank to provide up to $2 bn in aid to Ukraine World Bank to provide up to $2 bn in aid to Ukraine

 The World Bank said Thursday it is prepared to provide up to $2 billion in financial assistance to conflict-torn Ukraine this year, part of an international package of support, AFP reports.

"Today I am announcing that the World Bank is ready to commit up to $2 billion in 2015, supporting the people of Ukraine in the face of current economic, financial, and geopolitical challenges," said World Bank President Jim Yong Kim in a statement.

The World Bank pledge came hours after a cease-fire agreement between Ukraine and pro-Russian separatists was announced in Minsk.

Earlier Thursday, International Monetary Fund Managing Director Christine Lagarde announced a preliminary deal on a new, four-year bailout for Ukraine worth $17.5 billion.

Lagarde said that, in total, Ukraine would receive $40 billion in assistance over four years, including loans from other sources like the World Bank.

"The Bank is working closely with the IMF," the development lender said.

Both the IMF and World Bank financial aid offers require approval by their respective boards.

The Bank said the fresh aid would include budget support for reforms, especially in the gas and banking sectors, and investment projects to improve health services and public infrastructure, as well as focus on protecting the poor and fighting corruption.

"We hope that today's agreement in Minsk and the IMF's agreement with Ukraine will pave the way for a more stable economic and development environment to benefit the people of Ukraine," Kim said.

After marathon talks in the Belarussian capital Minsk, Russian President Vladimir Putin agreed with the leaders of Ukraine, France and Germany to a cease-fire in the 10-month war between Ukraine and pro-Russian rebels, beginning on Sunday.

At least 5,300 people have died and one million have been driven from their homes in the fighting.

Beset by war and corruption, Ukraine's pro-Western government is struggling to enact legal and economic reforms that would help steer the former Soviet republic out of Russia's sphere of influence and into Western institutions.

In 2014, the World Bank, a long-term development partner to Ukraine since it joined the institution in 1992, approved $2.9 billion in aid, including $1.25 billion in direct budget assistance.

Ukraine's currency, the hryvnia, lost 50 percent of its value last year and the economy shrank about 7.5 percent, with a further contraction of 5.0 percent expected this year.

Nobel prizewinner proposes a new city in KZ
New abnormal snowfalls expected in Kazakhstan
Huge glacier retreat triggered in 1940s
Hyperloop construction begins in Las Vegas
"Moonlight" to top Spirit Awards nominations
Oil prices fall due to investors uncertainty
New dwarf galaxy discovered around Milky Way
Kanat Islam becomes a top ten WBO boxer
World oil prices continue to rise
Kazakhstan expects warming - Kazhydromet
Merkel to seek fourth term as chancellor
Sale of Tintin drawings set to break records
US, EU stocks fall as markets focus on dollar
Pacific leaders urged to defend free trade
EU warns eight nations on budget deficit
Universiade-2017: Athletic Village is ready
Bob Dylan can't make Nobel ceremony
Messi will never leave Barca - club president
Google, Facebook take aim at 'fake' news
Aerosmith announces Europe 'farewell' tour
Putin, Trump to normalise US-Russia ties
At least 10 hurt in southern Turkey blast
6.2 quake hits western Japan
OPEC agrees shock oil output cut
Israeli ex-president and Nobel laureate Peres dies
Germany blocks WhatsApp data transfers to Facebook
32,000 arrested in Turkey coup probe
Youth to the fore as Milan fashion week opens
Xenophobia threatening peace in eastern Germany
Four-in-10 Japanese are virgins: poll
Sweden re-militarises Baltic island of Gotland
China to launch second space laboratory: Xinhua
More than a billion stars mapped in Milky Way: ESA
Boxing: Golovkin eyes Saunders after stopping Brook
Kazakhstan shifts PM to security chief
Oil prices gain despite rising OPEC supply forecast
US to give Philippines military planes
Singapore wages war on Zika-bearing mosquitoes
Italy quake death toll nears 250
Viral photos add fuel to French burkini debate
18 dead as Italy struck by powerful quake
Japan's first lady visits Pearl Harbor
Pokemon's a no-go on Bangkok's roads
July was Earth's hottest month in modern times
Pakistan rock climbers scale new heights