The Washington-based World Bank approved a new international loan of 0 million to aid Ukraine’s struggling economy, the organization said in a statement.
“The package of reforms supported by this operation will help address the deep-rooted structural problems that have contributed to Ukraine’s current economic crisis,” said Qimiao Fan, World Bank Country Director for Belarus, Moldova, and Ukraine.
“We are helping Ukraine to implement an urgent set of measures, which will be essential to stabilize the economy, provide quality services to all Ukrainians and return the country to a sustainable growth path.”
The loan is part of the World Bank’s financial package announced in February. It aims to provide Kiev with up to billion in 2015.
According to Ukraine’s Foreign Ministry, this project is the second in a series of operations the World Bank has undertaken aimed at supporting economic recovery and growth in the country.
“The importance of this decision lies in the fact that it will provide the so-called parallel financing from the government of Japan in the amount of 0 million, as well as by the Norwegian government in the amount of million,” the ministry said in a statement.
Earlier in August, the International Monetary Fund (IMF) approved a new .7 billion loan for Kiev, a tenth of the .5 billion financial assistance program adopted by the IMF’s executive board in March. Ukraine agreed to implement economic reforms in return for the bailout.
According to the National Bank of Ukraine’s July statement, Kiev’s debt will hit 95 percent of GDP by the end of this year.
In August, Ukraine’s government managed to avoid a technical default by making a 0 million payment on its Eurobonds. The next payment of 0 million is due in September