Ukraine - DPL 2

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The development objectives of Second Development Policy Loan Program (DPL2) for Ukraine are to: i) promote good governance, transparency and accountability in the public sector (Pillar A); ii) strengthen the regulatory framework and reduce costs of doing business (Pillar B); and iii) reform inefficient and inequitable utility subsidies while protecting the poor (Pillar C). The reform program supported by the DPL series is being implemented against the backdrop of unprecedented challenges – a major economic and financial crisis compounded by a protracted conflict in the east. The DPL2 sustains and deepens reforms supported by the DPL1 across the three objectives. While macroeconomic challenges have intensified since the DPL1, the objectives and specific policy measures supported by DPL2 remain relevant. Better governance, an attractive investment climate, a financially viable energy sector, and fiscally affordable and targeted social safety nets are all critical for Ukraine to return to economic stability and growth. The DPL series supports a balanced distribution of the social burden of economic adjustment – thereby contributing to the World Bank Group’s corporate goals of supporting shared prosperity and reducing poverty.