The World Bank has announced a financial aid package of $2.05 billion for Ukraine, as reported on the institution's official website. This funding is sourced from two channels: $1.05 billion is provided through the International Bank for Reconstruction and Development, enhanced by the Ukrainian trust fund Advancing Needed Credit Enhancement (ADVANCE), supported by Japan and the United Kingdom.
Additionally, the new assistance is co-financed by a $1 billion grant from a special financial intermediary fund established by the World Bank in October 2024. In December of the same year, the United States allocated $20 billion in loans to Ukraine through this fund, which will be repaid using frozen Russian assets.
This new aid marks the first instance of utilizing the American loan for Ukraine. The funding is part of the Development Policy Operation (DPO) program, aimed at supporting the Ukrainian government in implementing reforms to bolster the country's economic potential and enhance macro-financial stability.