BUSINESSINDIVIDUALS

World Bank provides $500 mln loan for Ukraine's financial sector

The World Bank's Board of Executive Directors has approved $500 million loan to finance the development of Ukraine's financial sector .

This is reported on the website of the financial institution.

"The World Bank's Board of Executive Directors approved $500 million loan to finance the development of Ukraine's financial sector ," the press release reads.

These funds will strengthen the capacity of the Deposit Guarantee Fund to ensure that it can adequately perform its critical bank resolution and insured deposit payout functions in the case of bank failures.

The World Bank said that this operation was part of the World Banks broader financial support package announced in February this year, which aims to provide Ukraine with up to US$2 billion in 2015.

The Ukraine's Government previously reported that $500 million loan from the World Bank was provided for 16 years, with a seven-year grace period at a variable interest rate, which currently stands at 1.25%.

By Ukrinform