News item | 01-03-2022 | 15:38
In addition to military and humanitarian support, Ukraine can also count on financial aid from the Netherlands. The Netherlands provides a guarantee to the World Bank with which Ukraine can borrow an extra €100 million. The money is intended to help Ukraine finance the budget so that the country does not destabilize further macroeconomically and it has sufficient financial resources.
Loan guarantee
The World Bank wants to help Ukraine with $350 million to finance the country’s budget. This is the maximum amount the institution can currently lend to the country. However, Ukraine now needs more funding. The shareholders of the World Bank have therefore been asked to make an additional contribution. The Dutch cabinet is issuing a guarantee with which an extra €100 million can be lent to the country.
close ties
With the Dutch guarantee, the World Bank is able to raise the money on the capital markets and make it available to Ukraine via a loan. The loan remains dependent on developments. Should a regime change take place in Kiev, the Netherlands will retain the option of using the guarantee alternative in favor of the Ukrainian population.
“Ukraine deserves our support in every way possible, in this case through the World Bank. We do this together with other countries,” said Minister of Finance Kaag.
Request for help
The invasion of Ukraine has led to a withdrawal of capital from the country, making access to the financial markets seriously difficult. The conflict also leads to an increase in the budget deficit. The Ukrainian government is therefore in urgent need of financial support and has asked the international community for help. With the guarantee, the Netherlands joins like-minded countries that support Ukraine financially.