Programmatic Financial Sector DPL 1

closed

Closed

The First Programmatic Financial Sector Development Policy Loan (FSDPL1) supports a program of high-priority reform measures in the banking sector, and is a part of the World Bank Group's broader crisis-response support package for Ukraine. The FSDPL1 is the first in a series of two operations and is in the amount of US$500 million. The objective of the FSDPL series is to assist the authorities in: (i) strengthening the operational, financial and regulatory capacity of the Deposit Guarantee Fund (DGF) for the resolution of insolvent banks; (ii) improving the solvency of the banking system through implementation of bank recapitalization/restructuring plans and timely enforcement action; and (iii) strengthening the legal and institutional framework to improve resiliency and efficiency of the banking system. FSDPL1 is a key part of the World Bank Group's support to achieving the twin corporate goals of reducing extreme poverty and boosting shared prosperity in Ukraine. FSDPL1 is also aligned with the strategic directions set out in the FY12-16 Country Partnership Strategy (CPS), which envisaged a calibrated World Bank Group engagement depending on the pace and strength of reforms. In conjunction with the financial sector reforms supported by this operation, a complementary Fiscal Adjustment and Institutional Reform DPL series supports difficult but much-needed structural reforms to put the economy on a sustainable growth path.

FY17 - Financial Sector

World Bank Group

Project

Government