Ukraine Gets First Funds from Frozen Russian Assets
The government of Ukraine has started to receive money from frozen Russian assets. This is thanks to a $2 billion World Bank support package.
On December 20, the Ministry of Finance signed an agreement with the World Bank to get this money. The agreement is part of a bigger deal called the Development Policy Loan (DPL) mechanism. This tool helps countries with their budgets when they need it most.
The money will be used for reconstruction in Ukraine. It’s a big deal because it’s the first time frozen Russian assets have been used for this purpose. The World Bank is providing $2 billion, and the US has contributed to this through its FIF fund.
Other governments are also involved. Japan and the UK will guarantee a loan of $1.05 billion. This means that if Ukraine can’t pay back the money, these countries will take responsibility instead.
Ukraine’s Prime Minister Denys Shmyhal is happy about this development. He says that his country has completed all necessary steps to get the funds. He’s grateful for the support from its partners in helping Ukraine recover economically and rebuild.
This news comes after the US Treasury announced a $20 billion loan to Ukraine earlier this month. The goal of these efforts is to use frozen Russian assets to help Ukraine with emergency services, hospitals, and other essential needs.
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