Ukraine will receive $88 million in funding as part of the World Bank’s Resilient, Inclusive, and Environmentally Sustainable Entrepreneurship (RISE) project to support the private sector. The funds are provided under a guarantee from the Japanese government to the International Bank for Reconstruction and Development (IBRD).
“As a result of the conclusion of this agreement, it is planned to attract $80 million ($8 million – capitalization of interest on the loan, which will be used to pay a one-time commission and a commission for obligations) to the general fund of the state budget,” the Ministry of Finance said in a press release on Tuesday.
According to the press release, the loan agreement was signed by Ukraine’s Minister of Economy, Environment, and Agriculture Oleksiy Sobolev and the World Bank’s Regional Director for Eastern Europe Bob Som.
The RISE project aims to address critical issues that hinder the sustainability, growth, and sustainable development of the private sector. The project is scheduled to be implemented between 2024 and 2027. The total amount of funding for the implementation period is planned to exceed $1 billion, of which $593 million has been preliminarily allocated.
The Ministry of Finance also noted that the total budget assistance from Japan attracted through World Bank mechanisms since February 2022 has exceeded $8.7 billion.
RISE is a World Bank project implemented using the Program-for-Results (PforR) financial instrument. Part of PforR aims to review and support results in the following areas: improving the effectiveness of state support for SMEs with a focus on green competitiveness; improving the business environment and digital government services for businesses; ensuring SMEs’ access to export markets.
