The World Bank is set to provide $841 million to Ukraine to cover pension payments. This funding serves as a reimbursement for expenditures already made by the Ukrainian state budget, helping to stabilize government finances amid significant fiscal pressure.
The Government of Canada acts as the guarantor for this transaction, which reduces the credit risk for the World Bank. This support is part of the broader Public Expenditures of Administrative Capacity Endurance (PEACE) initiative, which has mobilized $53.5 billion since June 2022.
Prime Minister Serhii Koretskyi announced the funding on September 14. The initiative aims to maintain essential social services while the country directs a substantial portion of its resources toward defense spending.
Beyond this disbursement, Canada is considering participation in a proposed European Union loan framework for Ukraine, which is valued at approximately €90 billion, or $105 billion. The Ukrainian government is currently preparing budget revisions to address ongoing fiscal gaps.
