31.03.2014 Press release
Governor of the National Bank of Ukraine Stepan Kubiv held a final meeting with a World Bank mission team headed by Aleksandr Pankov. The Mission worked in Ukraine during 24-28 March to identify the priorities and main areas of focus for financial sector reforms that could be supported by the World Bank.
As is known, the World Bank Group has announced its total support for structural reforms in our country and pledged its readiness to provide a financial aid package worth up to USD 3 billion to foster Ukraine's economic development. This assistance will come as part of systemic (USD 1 billion) and investment (USD 1.2 billion) projects supported by the International Bank for Reconstruction and Development, programs funded by the International Finance Corporation in the banking sector, agribusiness, infrastructure, and other industries (USD 400 million), including provision of technical assistance and advisory services.
The World Bank’s financial aid program will focus on restoring macroeconomic stability, making the banking sector more resilient, reforming the energy sector, clamping down on corruption, enhancing accountability, improving the investment climate, and providing targeted social assistance to the vulnerable.
The World Bank mission that worked in Ukraine during the last week has produced the Action program designed to reform the financial sector of Ukraine. This program can be funded with a loan worth up to USD 1 billion to be provided by the World Bank as part of the Development Policy Loan program. The Action program will enable the banking system to undergo a comprehensive rehabilitation and enhance the financial soundness of the banking sector.
Ukraine in cooperation with the World Bank has embarked on preparation and implementation of measures aimed at ensuring the effective functioning of the financial security system, conducting diagnostic examinations to identify risks in the banking system and developing adequate measures to address them, including those for systemically important financial institutions.
The World Bank mission team’s visit to Ukraine coincided with the conclusion of an International Monetary Fund mission that had worked in Ukraine to prepare an economic reform program that will be covered by a two-year Stand-By Arrangement program worth USD14-18 billion.