The World Bank’s Board of Executive Directors has approved the first Development Policy Operation (DPO) titled “Jobs in Ukraine and Private Sector Growth,” which aims to support the reforms being implemented by the Ukrainian government. The initiative is designed to create favorable conditions for attracting investment and private capital, address labor shortages, and further integrate the Ukrainian economy into international markets. This was reported by Dengi.ua , citing a press release from the bank.
The first of two planned operations under the program will provide Ukraine with $3.39 billion in financing. This amount includes a $1.04 billion World Bank loan, backed by $540 million in credit support from the ADVANCE Ukraine trust fund, with the assistance of the U.S. and U.K. governments. In addition, a $2.35 billion grant is provided by the F.O.R.T.I.S. Financial Intermediary Fund, established to mobilize resources for Ukraine’s recovery and resilience.
“Despite extremely challenging conditions, Ukraine is steadily advancing its reform program, creating an environment conducive to private investment and job creation, and consistently strengthening its markets and institutions to pursue its aspiration to join the European Union. “This DPO Program reflects the significant progress Ukraine has made. The World Bank Group and our partners stand ready to provide further support for the implementation of Ukraine’s reform program, its aspirations to join the EU, and its efforts to build a more prosperous future,” said Bob Som, the World Bank’s Regional Director for Eastern Europe.
The program aims to support Ukraine’s economic recovery with the private sector playing a leading role and focuses on three key areas:
- The first area involves stimulating investment and expanding access to financing by improving legislation on public-private partnerships, developing financial intermediation mechanisms for small and medium-sized enterprises, and advancing privatization processes.
- The second focus area involves attracting qualified professionals to the labor market through housing policy reforms, measures to promote entrepreneurship among veterans, expanding employment opportunities for women, and narrowing the gap between workers’ skills and employers’ needs.
- The third priority is deepening cross-border economic integration, which includes increasing the transparency of state support for the agricultural sector, strengthening the integration of the Ukrainian electricity market with the European market, and aligning environmental monitoring with international standards.
The World Bank notes that the DPO program is a critical component of the international financial assistance package for Ukraine. Over the past four years, the support mobilized by the Bank - accompanied by oversight and audit mechanisms - has enabled the Ukrainian government to provide vital services to more than 20 million citizens. Funds were directed, in particular, toward supporting healthcare, education, agriculture, and small and medium-sized businesses.
The organization emphasizes that creating quality jobs remains one of the main tools for combating poverty and expanding economic opportunities. Therefore, the World Bank continues to help countries strengthen conditions for private sector development, ensure sustainable economic growth, and attract investment in the most critical sectors of the economy.
