$2B in loans to help Ukraine's ag, fuel import businesses
Private businesses in Ukraine are in line to receive $2 billion in financing arranged by the International Finance Corp. to help rebuild the country’s agriculture and fuel import industries and other ventures, which have faced extensive losses because of the war
WASHINGTON (AP) — Private businesses in Ukraine are in line to receive $2 billion in financing arranged by the International Finance Corp. to help rebuild the country's agriculture and fuel import industries and other ventures, which have faced extensive losses because of the war.
The IFC, a member of the World Bank Group, provides private sector financing to developing countries. The loans differ from the billions that Ukraine has received in grants and other forms of no-strings-attached aid from donor nations, as they must be paid back.
Since Russia invaded in February, at least 5 million jobs have been lost, according to Ukraine’s Ministry of Economy. The National Bank of Ukraine estimates that 11% of businesses had closed as of September and more than half were operating below capacity.
Loans to the country's private sector will become more important in coming years as Ukraine's finance ministry copes with a widening budget deficit. In addition, grants and other foreign aid are not guaranteed, and Republicans in the U.S. Congress have signaled uncertain support for Ukraine when they take control of the House in January.
