Japan International Cooperation Agency (JICA) will provide Ukraine with a $100 million loan for 30 years at 1% per annum with a grace period of 10 years, the Ministry of Finance said on its website.
According to the press release, the agreement was signed on Monday by Finance Minister Serhiy Marchenko and JICA President Dr. Akihiko Tanaka.
“The concessional loan of 13 billion yen, which is the first part of the agreed financial assistance between Ukraine and Japan, will be directed to the state budget to finance priority expenses. First of all, to support the most unprotected population of Ukraine,” the press service of the ministry said, citing Marchenko.
The signed agreement refers to the budgetary support for the stabilization of the situation in Ukraine, in particular, the provision of priority social, and humanitarian expenditures, health care, support for internally displaced persons, and other priority expenditures, the Finance Ministry added.
The representatives of Ukraine and the European Union have signed a memorandum of understanding and a loan agreement on providing the fourth program of macro-financial assistance to Ukraine (MFA IV) in the amount of EUR1 billion.
On the part of Ukraine, the documents were signed by Acting Minister of Finance Oksana Markarova and Governor of the National Bank Yakiv Smolii, from the side of the EU by Vice President of the European Commission for Euro and Social Dialogue, Financial Stability, Financial Services and Capital Markets Union Valdis Dombrovskis.
The ceremony of signing the loan agreement and the memorandum was attended by President of Ukraine Petro Poroshenko and Prime Minister of Ukraine Volodymyr Groysman.
After signing, the head of state thanked the European Commission and Dombrovskis for “the comprehensive and great support the European Union provides to the Ukrainian government and the Ukrainian people.”
“This is a great help in carrying out the reforms and supporting the reforms – not only financial, but also consultative – and you are rightfully a participant and co-sponsor of the reforms that have been held in Ukraine over the past four years,” Poroshenko said.