Business news from Ukraine

UKRAINE RECEIVED ADDITIONAL $500 MILLION LOAN FROM JAPAN

Ukraine has received an additional 65 billion Japanese yen (approximately $500 million) in a soft loan under a loan agreement signed by Finance Minister Sergei Marchenko and Japan International Cooperation Agency JICA President Akihiko Tanako.
The loan was granted on preferential terms: the loan repayment period is 30 years, including a grace period of 10 years; the interest rate is 1% per annum, the Ministry of Finance said on Monday.
The funds were sent to the state budget to finance priority social and humanitarian expenditures, health care, the ministry specified.
The Ministry of Finance recalled that on June 7, the governments of Ukraine and Japan signed an additional agreement on a JICA loan for a development policy in the field of emergency economic recovery. The agreement increased the loan amount by 65 billion Japanese yen, bringing the loan amount to 78 billion Japanese yen (about US$600 million).
Ukraine received the first 13 billion Japanese yen (about $100 million) under the said agreement on May 24.
The Ministry of Finance expected that in June the volume of external financing will increase to $4.8 billion compared to $1.5 billion in May, but before this Japanese loan since the beginning of the month it has so far amounted to only about $1.5 billion.

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WORLD BANK TO SOON PROVIDE UKRAINE WITH $100 MLN LOAN TO HELP IDPS

The World Bank will soon provide Ukraine with a $100 million loan to help internally displaced persons (IDPs), World Bank Regional Country Director for Eastern Europe Arup Banerji has said.
He said in an interview with Interfax-Ukraine that given the acute need for central budget financing, the World Bank is currently focusing on providing quick and immediate assistance, which, in turn, can help the population, especially the most vulnerable groups of the population. First, very soon we will allocate another $100 million to help internally displaced persons, he said.
Banerji added that the World Bank continues to provide assistance in the healthcare, infrastructure and energy sectors under existing projects.
We are also exploring opportunities for cooperation with other bilateral development partners (for example, Italy, Japan and the United States) who are very interested in attracting PEACE (Project Support to Public Expenditure to Sustainable Public Administration in Ukraine) loan and funding others types of confirmed budget expenditures, the World Bank regional director noted.
Specific items have not yet been agreed, but will certainly include additional payments to internally displaced persons and other vulnerable groups in Ukraine, Arup Banerji added.

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GERMAN KFW TRANSFERRED EUR 150 MLN LOAN TO UKRAINE

The Credit Institution for Recovery (KfW) transferred EUR 150 million to the state budget of Ukraine on Friday for a 15-year loan with a five-year grace period, the Finance Ministry said.
“Today, another loan from the Credit Institution for Recovery (KfW) in the amount of EUR 150 million was transferred to the state budget of Ukraine. These loan funds were provided as co-financing of the Additional Financing of the Development Policy Loan in the Conditions of Emergency Economic Situation of the International Bank for Reconstruction and Development,” — The Finance Ministry announced on its website on Friday.
The funds raised will be directed to social spending and spending in education and health, the ministry said.

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CANADA WILL PROVIDE UKRAINE WITH LOAN FOR CAD 1 BLN FOR 10 YEARS

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.

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ENERGOATOM ATTRACTED LOAN OF UAH 1.5 BLN TO PURCHASE FUEL FROM WESTINGHOUSE

The state-owned enterprise NNEGC Energoatom has raised a UAH 1.5 billion loan from Ukreximbank (Kyiv) to purchase fresh nuclear fuel from Westinghouse in 2022.
“The borrowed funds will make it possible to increase the purchase of American fuel and ensure the efficient operation of power units of Ukrainian nuclear power plants after the rejection of Russian nuclear fuel,” the NAEC said in a statement.
As reported, Energoatom, at the beginning of a full-scale Russian military aggression, announced a complete refusal to purchase Russian-made nuclear fuel.
Energoatom is the operator of all four operating nuclear power plants in Ukraine. Operates Zaporozhye, South-Ukrainian, Rivne and Khmelnytsky stations with 15 power units equipped with water-cooled power reactors, with a total installed electric capacity of 13.8 GW.

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CANADA WILL PROVIDE AN ADDITIONAL LOAN OF $ 195 MILLION TO UKRAINE

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.

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