Ukraine

                                    Country Partnership Framework

                                              June 20, 2017

                                            Chair Summary*


        Executive Directors discussed the joint IBRD/IFC/MIGA Country Partnership Framework
(R2017-0129[IFC/R2017-0128, MIGA/R2017-0044]) for Ukraine for the period FY17-21. Directors
recognized that stabilization in the political environment provides a timely opportunity to address long
term bottlenecks, and underlined the importance of the CPF reforms to help move Ukraine towards a
more sustainable and inclusive economic recovery.

        Directors noted that the flexible nature of the CPF program is fully appropriate given the
substantial uncertainty of Ukraine’s development trajectory, the complex political environment, the
ongoing conflict in the east, and the still prevalent state capture, as well as limited remaining IBRD
lending capacity. They underscored that new lending opportunities should be considered based on
successful implementation of policy reforms and IBRD’s overall lending capacity. They also noted that
progressing on the large undisbursed portfolio is essential.

         Directors recognized that the CPF provides a framework that enables the World Bank Group to
take advantage of its convening and leveraging capacity, built on coordination efforts with the private
sector, IMF, and other partners, and highlighted opportunities for learning from the experience of others
who have gone through similar transitions. They supported exploring further assistance through the multi-
donor trust fund. They called for strengthening the banking and financial sector, facilitating land reform,
and mitigating the inherent risks in Ukraine. In that regard, addressing governance challenges, corruption,
and vested interests, in addition to encouraging citizen engagement, were considered fundamental to the
success of the CPF.




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*This summary is not an approved record.