This financial support, which is provided on a non-repayable basis, falls under the auspices of two World Bank projects: "Strengthening the Health Care System and Preservation of Life" (HEAL Ukraine) and "Renovation of housing for the restoration of people's rights and opportunities" (HOPE).
The allocation of these funds is aimed at addressing critical needs within Ukraine, particularly in expanding medical services and access to them, and in reconstructing residential infrastructure damaged by Russian aggression. Serhiy Marchenko, the Ukrainian Minister of Finance, highlighted the importance of this financial aid in aiding the government to offer essential support to its citizens, especially in overcoming the repercussions of the conflict and rebuilding the nation's housing infrastructure.
The breakdown of the grant funding from Japan is as follows:
- $70 million is allocated to the HEAL Ukraine project, supporting the state budget as compensation for expenditures incurred under the medical guarantee program.
- $48.2 million is directed towards the HOPE project, aimed at reimbursing state budget expenses used for compensatory payments to homeowners for repairs in multi-apartment and private buildings requiring small to medium repairs.
This grant is part of the broader external financing Ukraine has received in March, totaling approximately $9 billion, with $1.1 billion coming from Japan. Looking ahead, external financing for Ukraine in 2024 is projected to reach $10.1 billion, cumulating to $83.7 billion since the beginning of the full-scale war. This international aid plays a pivotal role in supporting Ukraine's priority social expenditures and addressing the immediate needs arising from the ongoing conflict.
