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SECOND PROGRAMMATIC FINANCIAL SECTOR DEVELOPMENT POLICY LOAN

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Development objective

The Second Programmatic Financial Sector Development Policy Loan (FSDPL2) supports a program of high-priority reform measures in the banking sector, and is a part of the World Bank Group’s broader crisis-response support package for Ukraine. The proposed FSDPL2 is the second in a series of two operations and is in the amount of US$500 million. The objective of the proposed FSDPL series is to assist the authorities in: (i) strengthening the operational, financial and regulatory capacity of the Deposit Guarantee Fund (DGF) for the resolution of insolvent banks; (ii) improving the solvency of the banking system through implementation of bank recapitalization/restructuring plans and timely enforcement action; and (iii) strengthening the legal and institutional framework to improve resiliency and efficiency of the banking system.

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