Finland To Provide EUR 50M Loan For Ukraine's Reconstruction
"The loan will be provided for the Special Program for Ukraine Recovery 2.0 (SPUR 2.0), a new financing program established by IDA to respond to Ukraine's substantial reconstruction and recovery needs," the statement said.
According to the World Bank's latest estimate, the cost of Ukraine's reconstruction and recovery will amount to almost $588 billion over the next decade. Financing provided through the SPUR 2.0 program will bolster Ukraine's economic stability, help maintain the functioning of society and contribute to reconstruction efforts as Russia continues its war of aggression.
"Supporting Ukraine is both a matter of values for Finland and an investment in European security and stability. Russia's war of aggression has caused immense damage, and the international community must therefore continue its determined support to ensure the resilience of Ukrainian society and to rebuild the country," said Minister for Foreign Trade and Development Ville Tavio.
Read also: Ukraine and Finland sign drone dealFinancing provided through the program can mobilize substantially more funding for Ukraine on more favorable terms than usual, owing to IDA's strong balance sheet and AAA credit rating. The EUR 50 million loan granted by Finland will consequently enable the World Bank to channel significantly more funding to Ukraine.
The loan decision requires the consent of parliament.
In 2023, Finland participated in IDA's previous SPUR program in support of Ukraine and Moldova. At that time, Finland allocated a EUR 50 million loan and a EUR 12 million grant for the program as part of a larger contribution to IDA Crisis Facility.
As reported, the Finnish government supported the establishment of a Special Tribunal for the Crime of Aggression against Ukraine and an International Claims Commission for Ukraine, with the relevant proposals submitted to the Finnish parliament.
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