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Ukraine - Rehabilitation Loan (Английский)

The main objective of the Rehabilitation Loan Project is to support the government's economic reform program to stabilize the economy and create the conditions for a resumption of economic growth. Other objectives are to: (i) provide foreign exchange for the purchase of critical imports; including for the private sector; (ii) provide budgetary support for the strengthening of the social safety net for the neediest; (iii) improve the functioning of the foreign exchange market; and (iv) provide a framework for financial assistance from other donor agencies. The loan supports policies that: (a) promote the development of competitive markets; (b) result in improved financial discipline and hard budgets for enterprises, farms and banks; and (c) improve the targeting of benefits to the most needy and strengthen the social safety net. Among the key reforms are price and trade liberalization; development of the private sector, and the abolition of the system of state order; privatization of small, medium and large enterprises, and agricultural land; restructuring of the electricity sector; and improved targeting of benefits to protect vulnerable groups, especially children in poor families and poor pensioners.

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