Development Policy Loan 2 (DPL 2)

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The Second Development Policy Loan (DPL-II) of Ukraine will support priority reforms in social and economic spheres as reflected in a series of successive Government programs. This development vision is concretized in the program supported by the DPL series in three pillars: (i) improving the investment climate to sustain growth, (ii) creating fiscal space for growth through strengthened public finances and public sector reforms; and (iii) improving service delivery and social inclusion. DPL-II builds on the achievements o f DPL-I. The first loan in the series supported important measures to liberalize trade, reduce tax distortions, create a telecommunications regulator, and reorganize and streamline public sector finances under the leadership of the Ministry of Finance among others. DPL-I envisaged an ambitious agenda of further reforms laid out over a 2-3 year period. DPL-II supports the completion of around two thirds of the envisaged measures as well as the achievement (in several areas over-achievement) of the associated medium-term outcome indicators.