At the end of March 2014, the World Bank and Government of Ukraine agreed on several key reform areas for Ukraine linked with loans targeting the development of the country’s financial sector, including:
- Examination of Ukraine’s banks;
- Strengthening of the Deposit Guarantee Fund;
- Regulation and controlling of Ukraine’s banking sector.The program includes 2 IBRD loans of US$500 million.
In September 2014, Ukraine received the first tranche in the two tranches.In order to unlock the second tranche of financial support from the World Bank, the Ukrainian Government must implement further measures including “Matrix”program.
On 20-21 August 2015 talks on progress against these objectives were held between the Ukrainian Government and the World Bank and both parties agreed and signed a draft of the Loan Agreement.Based on Ukraine’s progress and the discussions in August, on 15 September in Washington, the Board of the World Bank took a positive decision to unlock the second US$500 million tranche to support Ukraine’s financial sector.This loan, which will be transferred directly to the state budget, comes with favorable terms for Ukraine. It matures in 17 years with grace period of 6 years. Furthermore, it comes with very low interest rates for Ukraine to repay – 6-months LIBOR + variable spread (now approx. 1%), a one-time fee – of 0.25%, and reservations fee of 0.25%.