World Bank approves $2 billion for Ukraine including funds from new US loan fund

FILE PHOTO: The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Photo

WASHINGTON (Reuters) - The World Bank said on Wednesday its executive board approved $2.05 billion in Development Policy Operation funding for Ukraine that includes the first grant from a new $20 billion U.S. loan fund for Kiev that is backed by income from frozen Russian sovereign assets.

The new package aimed at boosting Ukraine's financial and economic stability also includes World Bank financing of $1.05 billion that is enhanced with loan guarantees from a trust fund supported by Japan and Britain, the World Bank said in a statement.

(Reporting by David Lawder; Editing by Chris Reese)