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Ukraine, US sign agreement on US$1 milliard in loan guarantees
03.06.2016 16:49 "Agro Perspectiva" (Kyiv) —
As of today, the governments of Ukraine and the United States have signed the declaration of intent and the agreement on US$1 milliard in loan guarantees between Ukraine and the United States as part of arrangements between the two countries’ leaders, UNIAN says referring to the Ukrainian Finance Ministry report.
As to the report, the document was signed by the Ukrainian Finance Minister Oleksandr Danyliuk and by the US Ambassador to Ukraine Geoffrey Pyatt with authorized representative of the USAID mission, Legislative Officer Joel B. Sandefur.
Reportedly, the loan guarantees agreement is part of bilateral and multilateral economic support for Ukraine comprising the International Monetary Fund’s four-year Extended Fund Facility program. It reflects increasing support for the economic reforms pursued by the government of Ukraine.
The agreement is aimed to support economic reform programs of Ukraine which are also supported by the IMF, USAID and other members of the international community. It should also facilitate access of Ukraine to the international capital markets.
As to the report, the funds worth US$1 milliard, which will be received from bonds to be issued with the US loan warranty, will be transferred to the Ukrainian State budget. They will be spent on social aid to the most vulnerable citizens to protect them against economic impacts including the adjusted gas prices.
«On behalf of the Government and the Ukrainian people, I would like to thank the United States for permanent and sustainable support. This agreement on loan warranties is important to our economic support and protection of financially vulnerable citizens,» Danyliuk said.
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