Disbursement of EXCLUSIVE World Bank loan to Ukraine increases to 460 million euros

WASHINGTON, March 3 (Reuters) – A World Bank emergency disbursement for Ukraine will increase to 460 million euros ($509 million) with contributions from Sweden and the Netherlands, and will be submitted for board approval on Friday, two people with knowledge of the transaction have learned. noted.

The Ukrainian government could receive the loan funds almost immediately after board approval, which could be delayed until early next week, one of the sources told Reuters.

The disbursement, staged at an unusual speed for the development lender, would provide Ukraine with the cash it desperately needs to fund government operations as it battles a Russian invasion that has killed thousands and sparked bombardment. devastating urban centers. Read more

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The Netherlands will guarantee a €95m increase in the loan, while Sweden will back a €50m increase, the sources said. The guarantees from the two countries will allow the World Bank to extend the disbursement to 460 million euros of a 350 million dollar (317 million euro) loan previously announced by the bank. Read more

Reuters reported on Tuesday that the $350 million for general budget support would be added to an existing development policy loan to speed up the approval process. Read more

The plan has the backing of the United States and other Western democracies which hold an overwhelming majority of the bank’s voting rights, the sources said.

Spokespersons for the World Bank and the US Treasury declined to comment on the additional contributions.

One of the sources familiar with the plan said the loan would be deemed approved if no objections were filed by Monday, but Russia’s chief executive could object, demanding a board meeting to review the plan, which could delay disbursement for a day or two.

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Reporting by David Lawder; Editing by Sandra Maler and Richard Pullin

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Shawanda H. Saldana