Funds in the amount of $132 million available for programs, including access to finance for small farmers
WASHINGTON, March 30, 2023 —The World Bank announced today the restructuring of the ongoing Program-for-Results (PforR) on Accelerating Private Investment in Agriculture to Ukraine program, which will envision allocating $132 million to meet new PforR aims of supporting the recovery of agricultural production affected by Russia’s invasion of Ukraine.
The Program will make funds available for the government programs that improve access to finance through the credit program “5-7-9” and partial credit guarantees for small farms, diversify agricultural production by supporting horticulture, and improve water deficit management and climate change adaptation.
"Ukraine's agricultural sector has continued to be severely impacted by the consequences of Russia’s invasion, as underlined by the just-published second Rapid Damage and Needs Assessment. The World Bank is working with international partners to quickly help the Government of Ukraine support agricultural recovery, prioritizing programs that help financing for the next production season (including partial credit guarantees), horticultural production for nutrition security, and efficient irrigation and water management," said Arup Banerji, World Bank Regional Country Director for Eastern Europe.
The restructured Program complements the efforts of other development partners such as the United Nations, European Union, and US Agency for International Development (USAID) to support the agricultural recovery. In particular, it contributes to the Agricultural Resilience Initiative launched by the USAID in early August 2022 that aimed to mobilize $250 million financing for supporting Ukraine’s agriculture.
The restructured Program adds to several previously announced packages for the World Bank’s Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project (see the full list of World Bank mobilized financing), which helps the Government of Ukraine to maintain essential services and core government functions amid the on-going war.
World Bank-facilitated financing for public expenditures in Ukraine is structured to help minimize the risk of corruption by retroactively funding basic eligible expenditures after verifying that funds have reached the intended beneficiaries and directly supporting the citizens of Ukraine.
To date, the World Bank has mobilized over $20.6 billion in emergency financing in support of the people of Ukraine, including commitments and pledges from donors: United States, UK, Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan (parallel financing). This vital support continues to be pivotal in addressing the devastating human and economic impacts of the on-going war.