World Bank: Ukraine fails to efficiently used funds provided
13:33, 14 August 2016

World Bank: Ukraine fails to efficiently used funds provided

Partly problems stem from Ukrainian bureaucracy that is regulated and very self-contained

13:33, 14 August 2016

The inability of Ukraine to master the tools provided by the World Bank is a global problem faced by all of its major lenders. ZN.UA reports this citing a senior portfolio manager of the World Bank projects (WB) in Ukraine Claudia Maksimenko.

Related: IMF: No precise date yet to discuss funding for Ukraine

"On the donor meetings, we see that the European Bank for Reconstruction and Development and the European Investment Bank and the KfW face these same problems. The experience of similar projects in other countries shows that they can be implemented in Ukraine, but the practice, unfortunately, proves the opposite", said Maksimenko.

According to her, part of these problems stem from the fact that the Ukrainian bureaucracy is regulated and very self-contained, all to the last steps described in the legislation, and any amendments to it turns out into a long and laborious process.

Related: World Bank Country Director for Ukraine to visit Kyiv on July 26

"Sometimes I have such sad impression that the World Bank projects in Ukraine are most needed to the World Bank. But we do not actually earn on Ukraine, investments are not the source of our revenues. Furthermore, if the project was not implemented or was not realized fully, it is rather a loss for us, because we spend on drafting our own funds, which Ukraine should not return to us. These services are not included in the loan, and the team that spends forces for the development and supervision of the unrealized or ineffective projects would send the same effort to address other equally urgent problems", said Maksimenko.

Related: World Bank: Ukraine’s economy to grow by 1 percent this year

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