Ukraine and the International Bank for Reconstruction and Development signed an agreement on a loan in the amount of USD 246.5 million under the SURGE program “Supporting reconstruction through prudent fiscal management”. Funding is provided from the ADVANCE Ukraine Trust Fund, which is supported by the Japanese government. This was reported by the press service of the Ministry of Finance.
The project is aimed at helping the government of Ukraine in creating an effective public investment management system in the conditions of post-war recovery, improving fiscal management at the local level, improving medium-term and program budgeting, as well as revenue administration.
According to the plan, by the end of 2025, the general fund of the state budget should receive 229.7 million US dollars, while 16.8 million will be used for interest capitalization, which will reduce the cost of servicing the loan in the coming years.
On behalf of Ukraine, the agreement was signed by Minister of Finance Serhiy Marchenko, on behalf of the World Bank by Regional Director for Eastern European Affairs Bob Som. The SURGE program has been implemented in Ukraine since 2024. During this time, the World Bank concluded financing agreements with Ukraine in the amount of 760 million US dollars, including 10 million dollars of grant funds.
The project is implemented through the financial instrument “ Program-for-results lending program” (PforR), which provides for the allocation of funds in case of achievement of specific indicators.
“Cooperation within the SURGE project allows us not only to manage public investments and resources more effectively, but also to increase the financial stability of communities, transparency of the use of funds, and the trust of taxpayers. I am grateful to the World Bank for the support of Ukraine and the trust that is the key to our joint success in reconstruction, – stressed Minister of Finance Serhii Marchenko after signing the agreement.
