Ukraine to receive $841 million from World Bank amid budget deficit
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Ukraine will receive $841 million in budget support from the World Bank, backed by Canada's guarantees, in the near future, Prime Minister Serhii Koretskyi announced on Sep. 14.
The news comes as Ukraine faces its toughest budget situation since the start of Russia’s full-scale war in 2022, with Koretskyi previously saying the government was imposing strict limits on non-defense spending.
The funding will be provided under the Public Expenditures of Administrative Capacity Endurance (PEACE) in Ukraine, designed to support Ukraine's social and humanitarian expenditures. It will be used to reimburse pension payments from the state budget.
"Amid budget deficit and fiscal imbalance, this is rather crucial and timely support," Koretskyi wrote on social media.
Ukraine's Cabinet is due to submit a draft budget to parliament by Sep. 15 for revision and amendments.
The PEACE project in Ukraine was established in June 2022. In four years, it has mobilized a total of $53.5 billion to provide Kyiv with budgetary support during Russia's full-scale war, disclosed the Ukrainian government.
Canada is currently discussing the possibility of joining the EU's 90 billion-euro ($105 billion) support loan to Ukraine, the Financial Times (FT) reported on Sep.13. According to FT's sources familiar with the matter, Canada wants to finalize the size of its contribution by the EU-Canada Summit in October.
