Ukraine gets 1.5 bln USD in concessional loan from Canada

Ukraine gets 1.5 bln USD in concessional loan from Canada

Canada allocates US$1.5 billion to Ukraine to help cover budget deficit

The State Budget of Ukraine received a CAD 2 billion (equivalent to USD 1.5 billion) concessional loan from Canada.

This financial assistance was received under the third additional agreement, which is an extension of the main agreement signed on 8 August 2022. The main agreement laid the foundation for cooperation and support between the countries, and the additional agreements expand and deepen this partnership, taking into account current needs and challenges.

“Canada is a strategic partner of Ukraine, providing not only financial support but also a reliable partner in the military and humanitarian spheres. Our countries cooperate fruitfully in various fields, including through the development and strengthening of bilateral economic relations, which has been consistently demonstrated through initiatives and joint projects. In addition, Canada supports Ukraine in financial monitoring by putting russia among the countries on the FATF blacklist, which is a significant step in reducing the aggressor’s capabilities in the international arena, especially in the area of international payments,” said Minister of Finance of Ukraine Sergii Marchenko.

The additional loan is provided for a 10-year term with an interest rate of 1.5% per annum. The loan is subject to a 4.5-year compliance period from the date of disbursement.

The total amount of direct budgetary support from Canada since the beginning of 24 February 2022 is almost CAD 7 billion.

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