Ukraine’s state budget on Friday received a CAD$2.4 billion (about $1.8 billion) loan from Canada on favorable terms under a second supplementary agreement, the Ukrainian Finance Ministry said.
“Canada has once again demonstrated that it is a reliable partner of Ukraine: today we received CAD2.4 billion, which will be used primarily to finance priority state budget expenditures,” Finance Minister Serhiy Marchenko said in a statement.
The Ministry of Finance specified that the additional credit was granted for 10 years with the interest rate of 1.5% per annum. The funds are provided through the mechanism of the IMF administrative account.
As reported, the external needs in financing the state budget of Ukraine in 2023 amount to about $ 38 billion, and after the recent increase of expenditures by 537 billion UAH they are estimated already at $ 42.5 billion.
According to the Ministry of Finance, by March 29, financing from international partners had already reached $9.17 billion by the beginning of this year, compared to $32.14 billion for the whole of last year. That includes $3.5 billion in grants from the U.S. this year, $4.85 billion in loans from the EU and another $495 million in loans and guarantees from Britain.
Domestic funding from government bonds this year amounted to $3.43 billion.
