On December 11, the World Bank (WB) approved the allocation of a $ 300 million loan to Ukraine to overcome the consequences of the Covid-19 pandemic and provide social support to the population. This is reported by press service of the WB.
"The Board of Executive Directors of the World Bank decided to provide Ukraine with a loan of $ 300 million for the second additional financing, aimed at overcoming the consequences of the Covid-19 pandemic, to the modernization of the social support system for the population of Ukraine," the message says.
It is noted that additional funding will strengthen the provision of social assistance to low-income families in order to prevent 1 million Ukrainian citizens from falling into poverty as a result of the Covid-19 pandemic.
According to the WB forecasts, due to the consequences of the pandemic, the poverty level in Ukraine may grow by 4%, reaching about 23% by the end of 2020.
"The allocated funds will help Ukraine finance urgent social protection measures to overcome the consequences of the Covid-19 pandemic, which provide for emergency cash payments to those citizens and households who have lost their jobs or sources of income as a result of the pandemic," the World Bank explained.
The department notes that the loan will support the strengthening of the social protection system in Ukraine in the coming years.
According to the World Bank, 60% of Ukrainian citizens who are on the brink of poverty due to the economic consequences of the Covid-19 outbreak are not yet recipients of social assistance under any of the existing social protection programs.