Finland's Ministry for Foreign Affairs has announced a EUR 50 million development policy loan to support Ukraine's reconstruction efforts. The loan will be granted to the International Development Association (IDA) of the World Bank Group, as part of the Special Program for Ukraine Recovery 2.0 (SPUR 2.0).
What happened
The SPUR 2.0 program is a new financing initiative established by IDA to respond to Ukraine's substantial reconstruction and recovery needs. The program aims to bolster Ukraine's economic stability, maintain the functioning of society, and contribute to reconstruction efforts. According to the World Bank, the cost of Ukraine's reconstruction and recovery is estimated to be around USD 588 billion over the next decade.
The EUR 50 million loan from Finland will enable the World Bank to channel significantly more funding to Ukraine, promoting economic recovery and sustainable reconstruction. The loan decision requires the consent of Parliament. Finland's participation in the SPUR 2.0 program aligns with its key objectives in supporting Ukraine, including maintaining the functioning and resilience of society, securing essential public services, and promoting economic recovery.
The World Bank Group has played a crucial role in meeting Ukraine's immediate financing needs, securing public services, and mitigating the economic impacts of the war. Finland's contribution to the SPUR 2.0 program is part of its ongoing efforts to support Ukraine, following its participation in IDA's previous SPUR program in 2023, where it allocated a EUR 50 million loan and a EUR 12 million grant.
