Economic Recovery Development Policy Loan

closed

Closed

The development objectives of the First Economic Recovery Development Policy Loan for Ukraine are to: (i) foster de-monopolization and anti-corruption institutions; (ii) strengthen land and credit markets; and (iii) bolster the social safety net. It is thus important to scale up social protection spending to cushion the impact on the population during the Coronavirus 2019 (COVID-19) pandemic, including increasing the predictability of pension benefits. The reforms supported by the development policy loan (DPL) have been selected based on their criticality for achieving the development objectives under each pillar; the new government’s priority to move forward with the reforms during the COVID-19 pandemic; and the World Bank’s comparative advantage in contributing to their design and implementation. The program also outlined key reform priorities including opening the agricultural land market, de-monopolization by unbundling the state-owned monopoly, Naftogaz, and making further progress in strengthening nascent anticorruption institutions. Risks of reform implementation come from weaknesses in institutional capacity and delays in decision making. These risks are mitigated by the government’s efforts to advance reforms and safeguard macroeconomic stability, as well as the strong voice of Ukrainian civil society in advocating for continued reforms and Ukraine’s strong cooperation with the international community and development partners.

World Bank Group

Project

Raw Materials, Government