Ukraine has received a grant of 1 billion dollars from the United States. For the first time, funds backed by revenue from frozen Russian assets have entered the state budget. This was reported by the press service of the Ministry of Finance.
"A grant of 1 billion dollars from the United States has been allocated to the state budget of Ukraine as part of the World Bank's second loan program in support of the 'Foundations for Growth' (DPL) development policy," the statement said.
Funding is provided through the US contribution of 20 billion dollars under the G7 ERA initiative, totaling 50 billion dollars. This is the first tranche from the World Bank's fund aimed at "Facilitating Resource Mobilization for Investment in Strengthening Financial Intermediation in Ukraine."
"For the first time, Ukraine is receiving funds that will be financed from the income derived from frozen Russian assets. I am grateful to the United States for its swift decision-making and readiness to find new mechanisms to support Ukraine," noted Ukraine's Finance Minister Serhiy Marchenko.
It is noted that the DPL program is aimed at supporting the implementation of reforms in Ukraine. The allocated funds will be credited to the general state budget fund in a single tranche based on the results of tasks completed prior to its signing.
Key reforms focused on strengthening the foundations of economic policy aimed at ensuring sustainable growth. Specifically, reforms related to railway infrastructure, customs and tax policy, combating corruption, state enterprises, and the development of the private sector.
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Ukraine is finishing 2024 with financial stability, and the government is confident in covering essential expenses next year, stated Prime Minister Denys Shmyhal.
According to him, the state expects to attract more than 38 billion dollars in external financing next year to cover crucial non-military budget expenditures, as well as to receive funds from frozen Russian assets.