The World Bank (WB) has set up a multilateral trust fund to support the Ukrainian government, the WB said in a statement.
The fund has attracted $250 million in seed financing.
“The Ukraine Recovery, Rehabilitation and Reform Trust Fund (URTF), which will be managed by the WB, will provide a coordinated mechanism for financing and supporting government activities,” the WB said in a press release.
According to the Swiss government’s commitments to the founding contribution and contributions from the governments of Austria, Iceland, Lithuania, the Netherlands, Norway and Sweden, the initial total amount of the fund is $250 million.
Canada and Japan have also pledged to support the URTF. Other partners are expected to join, the report said.
As the bank notes, due to the uncertainty of the situation in Ukraine, Kiev’s partners have to take a long-term approach to supporting the government’s efforts. Therefore, the fund has the structure of a flexible platform, which will provide the ability to respond quickly to changing circumstances and the needs of the country in the first 10 years of its operation.
The URTF will operate within the overall Multidonor Fund for Ukrainian Institutions and Infrastructure, which is part of the broader international support for the country and is coordinated by the World Bank group.
The WB recalls that to date it has mobilized $18 billion in emergency financing for Ukraine, taking into account donor commitments, of which more than $13 billion has already been disbursed. The largest donor is the United States.
The Trust Fund for Solidarity with Ukraine will start operating on May 5, President of the European Council Charles Michel has said.
“We are determined to do everything we can in order to support Ukraine, because we want the victory of Ukraine, and that’s why we use all the possible tools in our hands. Of course, the financial support is very important. We have the occasion with the president to do more in details. That is why, we have decided it a few weeks ago, after talk held by phone with the president, to launch this Trust Fund for Solidarity with Ukraine. In the following days, it will be May 5, it will be the starting point, with an international donor conference. It will be organized together with Poland, Sweden and with the support of the European Commission, all member countries, and also with the support of many international actors,” Michel said at a press conference with Ukrainian President Volodymyr Zelensky in Kyiv on Wednesday.
He said the EU is also working closely with international organizations such as the IMF, the World Bank and others to ensure that the EU can mobilize funds in support so that Ukraine can pay social allocations.
