The bank's mission wrapped up a visit to Ukraine, saying that the country could still receive money by the end of the year
untry had so far failed to meet key terms under a $100-million loan deal but could still receive money by the end of the year.
“We recognize significant progress….but there are still conditions to be fulfilled,” Paul Sigelbaum, head of the World Bank’s department for financial and private sector development, told a news briefing.
Sigelbaum said Ukraine had to complete legislative actions and deal with restructuring of the largest state bank Oshchadbank (savings bank) to secure disbursement of the last tranche under the $300 million loan approved in 1998.
The World Bank loan expires on December 31, 2000 and Ukraine risks losing the money if it fails to meet these and other terms. “There is enough time but actions must be taken promptly,” said Sigelbaum.
To unlock lending under the financial sector adjustment loan Ukraine should adopt a new banking sector law and a law on insuring individual deposits.
Parliament passed the law on banks and banking activity in a first reading in June and is due to debate it in the second and final reading in November.
The law on insuring individual deposits has not been submitted to parliament yet.
Sigelbaum also said disbursement depended on whether or not the International Monetary Fund resumed lending under a $2.6 billion loan frozen last September.
The government hopes to convince the IMF to unlock these funds by the end of the year.
