World Bank emergency loan for Ukraine increases to 460 million euros – National

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A World Bank emergency disbursement to Ukraine will increase to 460 million euros ($509 million) with contributions from Sweden and the Netherlands, and will be subject to board approval. administration on Friday, two people familiar with the transaction said.

The Ukrainian government could receive the funds almost immediately after board approval of the loan, which could be delayed until Monday, one of the sources told Reuters.

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The disbursement, staged at an unusual speed for the development lender, would provide Ukraine with the cash it desperately needs to bolster its defense against a Russian invasion that has killed thousands and sparked bombardments of urban centers and the largest nuclear power plant in Europe.

The Netherlands will guarantee a €95m increase in the loan, while Sweden will back a €50m increase, the sources said. The guarantees from the two countries will allow the World Bank to extend the disbursement to 460 million euros of a 350 million dollar (317 million euro) loan previously announced by the bank.

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Reuters reported on Tuesday that the $350 million for general budget support would be added to an existing development policy loan to speed up the approval process.

The plan has the backing of the United States and other Western democracies which hold an overwhelming majority of the bank’s voting rights, the sources said.

Spokespersons for the World Bank and the US Treasury declined to comment on the additional contributions.

One of the sources familiar with the plan said the loan would be deemed approved if no objections were filed by Monday, but Russia’s chief executive could object, demanding a board meeting to review the plan, which could delay disbursement for a day or two.
(Reporting by David Lawder; Editing by Sandra Maler and Richard Pullin)

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