This Loan Agreement (No. K0120-UA) is an instrument for securing additional financing from the International Bank for Reconstruction and Development (IBRD) in the amount of USD 390 million. The funds are directed towards supporting the “Resilient, Inclusive and Sustainable Entrepreneurship” (RISE) Program in Ukraine. The primary objective is to create a favorable environment for the private sector, in particular through the modernization of small and medium-sized enterprise (SME+) support programs, digitalization of services, and export promotion.
### Structure and Main Provisions
The Agreement consists of five articles defining financial terms, obligations of the parties, and implementation mechanisms, as well as three schedules and an appendix with terminology.
* **Financial Terms:** A front-end fee (0.25%), a commitment charge (0.25%), and a repayment schedule (from 2036 to 2055) have been established.
* **Implementation Mechanisms:** The Ministry of Economy is designated as the responsible authority for implementation and monitoring, and the Ministry of Finance for general oversight. The establishment of a Steering Committee and an Implementation Group is provided for.
* **Amendments:** This document is the second additional financing to the previous agreements from November 2024 and September 2025, indicating an expansion of the scale of the existing business support program.
### Important Provisions for Application
For practical application and understanding of the financing mechanism, the following aspects are key:
1. **Disbursement-Linked Indicators (DLIs):** Disbursement of funds by the Bank is linked to the achievement of specific indicators (e.g., lending volumes under the “5-7-9” program, number of jobs created, number of applications submitted via the “e-Permit” platform).
2. **Advances:** The Borrower has the right to receive an advance of up to USD 92.5 million; however, in the event that the planned results are not achieved by the closing date (October 31, 2027), the funds are subject to repayment.
3. **Prohibited Use:** The use of loan funds for any defense, security, or military purposes is strictly prohibited.
4. **Verification:** All results serving as the basis for disbursements must be confirmed by an independent Verification Agent in accordance with agreed-upon protocols.
5. **Operations Manual:** This is the main internal document that details all procedural issues, including anti-corruption measures and Environmental and Social Management System (ESMS) requirements. In the event of a conflict between the Manual and the Agreement, the text of the Agreement shall prevail.
