Ukraine and the International Bank for Reconstruction and Development have signed an agreement on a $246.5 million loan under the SURGE program “Supporting Recovery through Sound Fiscal Management,” the Ministry of Finance reported on Saturday.
“It is planned that by the end of 2025, $229.7 million will be allocated to the general fund of the state budget. Part of the loan, amounting to $16.8 million, will be used to capitalize interest in order to reduce the cost of servicing Ukraine’s credit obligations in the coming years,” the Ministry of Finance specified.
The project aims to support the Ukrainian government’s efforts to create an effective public investment management system in the context of post-war recovery and reconstruction, improve fiscal management at the local level, improve medium-term and program budgeting at the local level, and administer revenues, according to the release.
According to the release, the funds will be drawn from the Target Fund for Providing Ukraine with Necessary Credit Support (ADVANCE Ukraine), which is supported by the Japanese government. The agreement was signed by Finance Minister Serhiy Marchenko on behalf of Ukraine and Bob Som, Regional Director for Eastern Europe, on behalf of the World Bank.
The SURGE project has been implemented in Ukraine since 2024. During this time, the World Bank has signed agreements with Ukraine for $760 million in financing under the project, including $10 million in grant funds. It is being implemented using the Program-for-Results (PforR) financial instrument, which is based on the achievement of specific indicators linked to payments.
