January 26 2005, 09:42 Interfax-Ukraine

World Bank's project of funding rural development in Ukraine is renamed

The title of the Project, funded by World Bank in Ukraine and formerly named "The Project of Funding Rural Development" has been changed into "The Project of Extended Access to the Market of Financial Services", Interfax-Ukraine news agency informed.

The WB management supposes that the new title of the project will more adequately reflect its structure and goal. It regards extension of the access to credit resources for small and medium enterprises, in particular - in rural areas, and also improvement of legal, regulatory and institutional basis for development of new financial products, improvement of efficiency of Ukraine's financial institutions.

In October 2004 government of Ukraine took a decision to draw an advance loan from WB in the amount of $1.9 million for preparation of the project of financial development of rural areas. The negotiations between WB and Ukrainian government about preparation and realisation of the project started in November 2001. The Project will be realised in two stages of 4 and 3 years of length. Its total worth is approximately $275 million, of which $200 million are the funds of the loan and the remaining $75 million are the funds of Ukraine.

The WB credit can be provided on standard conditions - for up to 20 years of term, with the interest rate of Libor + 1 percent.