The Ministry of Finance of Ukraine and the World Bank have signed an agreement to provide Ukraine with a €236 million loan, which will be directed toward financing priority social expenditures of the state budget, according to the Ministry’s press service.
The funds will be raised under the PEACE in Ukraine project, or Public Expenditures for Administrative Capacity Endurance, implemented by the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group. The financing is provided under guarantees from the Government of Sweden.
The agreement was signed by Ukraine’s Minister of Finance Sergii Marchenko and World Bank Operations Manager for Eastern Europe Kevin Tomlinson. The funds are expected to be transferred to the general fund of Ukraine’s state budget in the near future.
According to Marchenko, the new loan will help ensure the stable functioning of state institutions during the war, support the country’s socio-economic resilience, and guarantee timely financing of social payments to the most vulnerable groups of citizens.
Following the receipt of the new tranche, the total amount of financing raised by Ukraine through the PEACE in Ukraine project will reach almost $53.5 billion. The program is the World Bank’s main instrument for supporting Ukraine’s public finances during the full-scale war.
Through the PEACE mechanism, international partners help Ukraine finance pension payments, social assistance, salaries for public-sector employees, and the operation of critical state infrastructure. Earlier, according to the World Bank, as of the end of 2024 Ukraine had received around $30.8 billion through the program, of which $25.5 billion was provided as grants by the United States.
The current financing is another example of Sweden’s participation in supporting Ukraine’s economy and public finances. In May 2024, Ukrainian President Volodymyr Zelenskyy and Swedish Prime Minister Ulf Kristersson signed a bilateral agreement on security cooperation in Stockholm. The document provides not only for military and financial support for Ukraine, but also for the development of joint defense projects.
Under this agreement, Sweden committed to providing Ukraine with SEK 75 billion, or about $6.5 billion, in defense assistance during 2024–2026. The guarantees for the new World Bank loan have become part of the Swedish government’s broader support program for Ukraine.
The new financing comes amid Ukraine’s continued high need for external budgetary support. International loans and grants remain among the key sources for covering the state budget deficit and financing the government’s social obligations during the ongoing war.
