The Cabinet of Ministers intends to attract a $100 million loan from the International Bank for Reconstruction and Development (IBRD) for the Eastern Ukraine: Reconnect Recover Revitalize (3R) Project.
In addition, the Cabinet of Ministers approved the composition of the delegation to participate in negotiations with the IBRD.
According to the draft resolution, the loan is planned to be attracted for a period of 27 years with a grace period of 12 years with a floating rate of LIBOR plus a variable spread.
According to the data on the website of the Ministry for Reintegration of the Temporary Occupied Territories, the project envisages investments in the resumption of agriculture through the implementation of private agricultural sub-projects aimed at overcoming the consequences of the armed aggression of the Russian Federation on the territory of Luhansk region controlled by the government of Ukraine.
The state-owned Ukreximbank (Kyiv) provided a EUR 500,000 loan to Nutsi LLC, which specializes in the sale of walnuts and pumpkin seeds, to export the 2020 harvest, the bank’s press service said on Thursday.
According to the bank, Nutsi has an extensive network of points to purchase nuts and seeds throughout Ukraine and exports raw materials throughout Europe.
According to the unified public register of legal entities and private entrepreneurs, Viacheslav Yanchiy is the ultimate beneficiary of Nutsi LLC, the size of the charter capital of the company is UAH 44,000.
Ukreximbank was established in 1992, the only owner is the state.
According to the National Bank of Ukraine, as of July 1, 2020, in terms of total assets, Ukreximbank ranked third (UAH 226.729 billion) among 75 banks operating in the country.
The European Bank for Reconstruction and Development (EBRD) has provided Olam International Ltd. (Singapore) with a $200 million loan to finance the company’s working capital needs in Ukraine, Turkey, Egypt, Georgia and Poland.
“The EBRD loan will finance purchases of agricultural commodities such as hazelnuts, dry dairy products, grain and onions in selected countries of operation. Local subsidiaries of the company will take on the processing, storage and distribution of these goods,” the bank said on its website.
“The European Union and the TaiwanBusiness-EBRD Technical Cooperation Fund will provide donor support for the development of new methodologies and processes for climate-related risk management and stress testing in Egypt and Turkey,” it says.
Olam International is a major food and agricultural products manufacturer headquartered in Singapore.
Olam International Ltd. 53.4% is owned by Temasek Holdings, 17.4% by Mitsubishi Corporation, 7% by Kewalram Chanrai Group and 6.3% by the Olam management.
Olam Ukraine LLC was founded in 2005 and is currently the leading supplier of cocoa beans and cocoa products to large local confectioners, as well as a major exporter of grain and milk powder products.
Ukraine will attract a loan from Cargill Financial Services International, Inc. in euros in the amount of up to EUR 250 million, the loans will bear interest at a rate of 5.95% per annum for contracts with maturity in three years and 6.85% for contracts with maturity in five years.
According to resolution No. 717 of the Cabinet of Ministers dated August 17, posted on the government portal, interest income will be paid on a quarterly basis.
The document notes that state external borrowings are carried out within the framework of the law on the national budget for 2020.
The European Bank for Reconstruction and Development (EBRD) could provide a senior sovereign-guaranteed loan of up to EUR 53 million for the acquisition and equipping of postal vans and for the development of modern automated sorting hubs in the cities of Kyiv, Lviv and Dnipro.
According to a report on the bank’s website, the project is pending approval of the bank’s board until September 30, 2020.
Tranche 1 of up to EUR 23 million is intended for the acquisition and equipping of postal vans to be deployed in rural areas across the country and Tranche 2 of up to EUR 30 million for the development of modern automated sorting hubs in the cities of Kyiv, Lviv and Dnipro and an associated network of regional sorting depots.
According to the EBRD, the total cost of the project is EUR 102 million, which includes EUR 53 million of EBRD loan, a EUR 30 million loan of the European Bank for Reconstruction and Development (EIB) and own funds of Ukrposhta in the amount of EUR 19 million.
Ukraine signed a memorandum with the European Union of understanding and a loan agreement between Ukraine, the National Bank of Ukraine (NBU) and the EU on the country’s receipt of macrofinancial assistance in the amount of EUR 1.2 billion.
On the Ukrainian side, the documents were signed by Finance Minister Serhiy Marchenko and NBU Governor Kyrylo Shevchenko.
