Canada will provide Ukraine with a loan in the amount of CAD 1 billion for a period of 10 years, a draft government decree testifies, and the terms of such a loan are being agreed.
As stated in Decree No. 639 of May 31, the interest rate on the loan will be equal to the base interest rate of the IMF, while the grace period will be 4.5 years.
Interest will be paid every six months after the end of the grace period, the document states.
Deputy Prime Minister and Minister of Finance of Canada Christia Freeland at a meeting of G7 finance ministers and central bankers in Germany on May 20 announced an additional loan of CAD250 million ($ 195 million) to Ukraine through an account managed by the International Monetary Fund (IMF) Of Ukraine.
“We will continue to work to hold Putin and his henchmen accountable for their illicit war and to ensure that Ukraine has the resources it needs to win. This new loan is an important contribution to these important efforts,” the statement said. website of the Government of Canada word Freeland.
According to him, together with previous financial support, this loan brings Canada’s financial obligations to Ukraine to CAD1.87 billion this year. This funding is provided separately and in addition to substantial military assistance, humanitarian assistance and immigration efforts, the release said.
Canada has previously pledged up to CAD1 billion for an IMF-managed account for Ukraine in the 2022 budget in addition to CAD 620 million in bilateral loans earlier this year.
Since February 2022, Canada has also provided military assistance to Ukraine in the amount of more than CAD620 million.
Canada, which has allocated 1 billion Canadian dollars (about $780 million at the current exchange rate) of financial support to Ukraine in its next budget, remains the only country that intends to use a special account administered by the International Monetary Fund (IMF) to send this assistance.
“The account allows donors to channel further support to Ukraine securely, through loans or grants, using our fiduciary infrastructure. Canada has a billion in its upcoming budget. I am not aware of any other pledges or commitments at this time. We will keep you posted,” he said. IMF Representative Gerry Rice at a traditional briefing in Washington on Thursday.
When asked about the Fund’s exchange rate advice, in particular the advisability of adjusting the fixed rate policy chosen at the start of the war, the IMF spokesperson said that he “is not aware of any specific advice that we have given regarding the adjustment at this time.”
Rice also said that the Fund remains in very close contact with the Ukrainian authorities, almost daily, in particular, a few days ago there was another conversation between IMF Managing Director Kristalina Georgieva and Ukrainian President Volodymyr Zelensky.
As reported, on February 24, the National Bank suspended the work of the foreign exchange market of Ukraine, except for the sale of foreign currency, and fixed the exchange rate at the official level of that day – UAH 29.2549/$1, which led to the emergence of a “black” market, where in the first days the exchange rate reached 39-40 UAH/$1. Later, the regulator allowed the sale of currency in branches that are under the threat of capture by the invaders, by decision of their leadership.
The NBU made the next liberalization step on April 15, when it granted banks and non-banking financial institutions the right to sell cash currency throughout the country at a rate not higher than “official plus 10%”, but within the volume of the purchased currency. As a result, many banks declared the possibility of selling foreign currency at the maximum possible rate of UAH 32.17-32.18/$1 and at the same time raised the purchase rate closer to the selling rate. However, according to market participants, it is extremely difficult to freely officially buy cash currency. Nevertheless, the “black” market reacted with a slight strengthening of the hryvnia, as a result of which the dollar exchange rate on it was only about 2% higher. Now this difference has increased to about 14%.
Ukraine, at the request of the Ministry of Agrarian Policy and Food of Ukraine, will receive 140 tonnes of buckwheat seeds, the vessel with the cargo was sent by the Canada-Ukraine Foundation (Canada), Ambassador of Ukraine to Canada Yulia Kovaliv wrote on Facebook on Monday.
The seeding rate of buckwheat is 80-100 kg/ha, respectively, Ukraine can sow 1,120-1,400 ha with seeds received from Canada.
According to the Ministry of Agrarian Policy, by May 12, Ukraine sowed 12,200 hectares with buckwheat, which is 14.9% of the 81,600 hectares planned for this year. Thus, thanks to assistance from Canada, Ukraine can sow 1.3-1.7% of the area planned for this crop.
President of Ukraine Volodymyr Zelensky announced his address and communication with students from leading universities in the US and Canada, as well as higher educational institutions in Ukraine.
According to him, the maximum attention of the world to Ukraine should be maintained, and information about the needs of the Ukrainian state should be present in the news of all countries.
“For greater informational and political support for Ukraine, on Monday I will communicate with students from leading American universities. These are 63 US universities and 2 Canadian universities that bring together hundreds of thousands of students and are a large expert and research community. Their voice will definitely strengthen our capabilities,” Zelensky said in a video message.
At the end of May, the head of state is scheduled to address the students of Stanford University.
Zelensky also announced his plans to communicate with Ukrainian students.
“I am also getting ready to communicate with Ukrainian students from leading universities. In my address to them, I will answer important and complex questions that already exist in our society and are already visible. I expect deep questions from them,” the president said.
The head of state also said that he would continue his appeals to the parliaments of European states. “Our task is the status of a candidate for the EU, and over time, accession to the EU under an accelerated procedure,” he said.
“It is equally important to have the maximum consent of the European countries to strengthen sanctions against Russia. It is for this that I will apply to the Luxembourg parliament in the near future,” he added.
In addition, according to Zelensky, work is underway to expand the geography of speeches before the parliaments of Africa and Asia.
On May 23, the head of state is scheduled to address the forum participants in Davos. “The pre-war reconstruction will be discussed. We are doing our best to collect the support of the world to the maximum,” he summed up.
During the next revision of the duties introduced back in 2001 on hot-rolled carbon and alloy steel sheet and strip from Brazil, China, India and Ukraine, Canada refused to extend the 77% duty on goods from Ukraine.
“The Tribunal reversed its ruling regarding the dumping of such goods exported or originating in Ukraine. The Tribunal found that continuing or resuming the dumping of these goods is unlikely to result in harm,” the Canadian International Trade Terminal said on the website of the Government of Canada.
With regard to products from Brazil, China and India, restrictive measures have been maintained.
“Since August 2001, duties of 77% have been imposed on hot-rolled carbon steel products originating from Ukraine in Canada, which effectively deprived our producers of an economic incentive to export their products to Canada. After 20 years, finally, Ukrainian steel products can again be exported to Canada “, – commented on this decision, Ambassador of Ukraine Yulia Kovaliv on Facebook.
