Ukraine to secure US$1bn World Bank loan for budget and reforms

By Pune Media On Jun 3, 2025

Ukrainian representatives. Photo: Ministry of Finance of Ukraine

The Ministry of Finance of Ukraine, in collaboration with the World Bank, is preparing a new Development Policy Operation (DPO) loan agreement worth at least US$1 billion to support reforms and budget needs.

Source: Ukraine’s Ministry of Finance

Details: From 2 to 6 June, World Bank experts are meeting Ukrainian government representatives to finalise the programme’s terms. The loan will provide direct funds to the state budget upon Ukraine meeting specified conditions.

“We are continuing joint work on the new Development Policy Operation (DPO) agreement, which will not only help attract necessary resources to support the State Budget, but also stimulate economic recovery and development,” said Deputy Finance Minister Olha Zykova.

In 2024, Ukraine received approximately US$3.5 billion through three DPO agreements, funding priority expenditures and reforms in the tax, customs, banking and energy sectors.

The 2025 agreement includes social policy reforms, notably a pilot programme for basic social assistance starting 1 July. This will consolidate multiple benefits into a single payment of UAH 4,500 (approx. US$108).

“The basic assistance will be provided to citizens who meet eligibility criteria, with a base amount of UAH 4,500. Recipients will be able to decide independently whether to switch to the new basic social assistance system,” said Deputy Finance Minister Roman Yermolychev.

The Ministry of Finance has also approved a draft law to support families and boost birth rates, set for implementation in 2026.

The terms will be finalised by late June, with Ukraine required to meet conditions by October. The World Bank’s board will decide on funding in November.

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