Latvia directs additional five million euros to Ukraine

The Latvian government has directed another five million euros for assistance to Ukraine, Finance Ministry said March 8.

These funds, which will be available to Ukraine through the World Bank, are intended to cover the immediate budgetary needs of the Ukrainian government at a time of military aggression by Russia.

Total World Bank aid is planned at $3 billion.

On Monday, March 7, the World Bank approved the first EUR 437.05 million in loans from the total aid package intended to cover the immediate budgetary needs of the Ukrainian government, including pensions, salaries for medical staff and teachers, and other emergency costs. Following a call from the World Bank, Latvia, together with other Member States (Britain, the Netherlands, Japan, Sweden, Lithuania, Denmark, Iceland), is participating in the co-financing of the loan through grants, guarantees, or parallel loans.

At present, Ukraine's financing needs represent approximately USD 12 billion, or 5.8% of gross domestic product (GDP). The World Bank forecasts Ukraine's economic slowdown of 7.1% in 2022 and a rise in fiscal deficits to 8% of GDP. The recovery of the economy will require substantial additional investment to return before the crisis to growth levels.

The World Bank shall ensure that donor countries' contributions are used according to their objectives.

 

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