Following Russia's invasion, Ukraine's economy has deteriorated, which means that Sweden plans to issue a guarantee of USD 50 million through the World Bank, corresponding to almost SEK 500 million.
A sum that will be added to the loan of just over SEK 3.3 billion that the World Bank is already preparing.
- The government's priorities are to continue to push for sanctions against Russia, to support Ukraine and strengthen Sweden.
Ukraine is in an acute crisis and its financial and economic stability is expected to weaken further as a result of the Russian invasion.
Through Sweden's guarantee, we can contribute approximately half a billion kronor in support to Ukraine in addition to the loan that the World Bank is already preparing, says Mikael Damberg in a press release.
Unpaid debt will be taken from development assistance money
In the event that Ukraine is unable to repay the loan, Sweden's guarantee will be financed through the development assistance budget.
Beyond the immediate human suffering caused by the war, Ukraine's economic development could be severely damaged.
By issuing a guarantee to the World Bank, Sweden contributes to supporting Ukraine financially in this financially very difficult situation, says Minister for Development Aid Matilda Ernkrans.
There are already decisions that Sweden will increase humanitarian aid by SEK 500 million, Ukrainian armed forces will receive SEK 500 million and defense equipment will be donated to a value of SEK 400 million.