KYIV. Aug 28 (Interfax-Ukraine) – Ukraine’s Minister of Economic Development and Trade Aivaras Abromavicius and World Bank Director for Ukraine, Belarus and Moldova Qimiao Fan have signed a loan agreement on the World Bank issuing a loan to Ukraine in the amount of $500 million to accelerate the pace of reforms.
“This $500 million of financial aid is intended for strategic and institutional reforms,” the Ukrainian minister said.
He said the money has been granted to improve public administration and the business climate, reform the energy sector, and provide assistance to the needy.
The loan has been granted for 16 years, with a seven-year grace period at a variable interest rate, which now stands at 1.25%.
“The package of reforms supported by this operation will help address the deep-rooted structural problems that have contributed to Ukraine’s current economic crisis. We are helping Ukraine to implement an urgent set of measures, which will be essential to stabilize the economy, provide quality services to all Ukrainians, and return the country to a sustainable growth path,” Qimiao Fan said.
He added that the World Bank is preparing another loan of $500 million, and that documents for granting this loan will be submitted to the World Bank Board of Executive Directors for consideration in September.
