11:39 28.03.2022

Ministry of Finance negotiating with intl partners on support of up to EUR 6 bln – minister

3 min read
Ministry of Finance negotiating with intl partners on support of up to EUR 6 bln – minister

The Ministry of Finance is negotiating with international partners on support in the form of loans and grants in the amount of up to EUR 6 billion, Finance Minister Serhiy Marchenko has said.

"Now, this is an absolute priority for both the president, the government and the Ministry of Finance. Today, we are negotiating support for a total amount of up to EUR 6 billion. This is both loan support and grant support," he said in an interview with Lb.ua.

He recalled that the $1.4 billion allocated by the IMF as Rapid Financing Instrument (RFI) is already in the accounts of the State Treasury.

"We also have a program of macro-financial assistance from the European Union for EUR 1.2 billion. And we already received EUR 600 million in two tranches of EUR 300 million each. We are conducting further consultations with the European Commission on the following programs and tranches. We received assistance from the World Bank under the Economic Recovery Development Policy Loan (DPL) for EUR 312 million," the minister recalled.

According to him, the World Bank is creating a multi-donor trust fund (MDTF) for Ukraine. Sweden, the Netherlands and Austria have already joined it. Thus, Sweden is ready to provide guarantees for $50 million, the Netherlands – for $89 million, Austria – for $10 million. In addition, Ukraine is negotiating with the Japanese government on loan support for at least $100 million.

"There is an opportunity to increase and we are actively working on it," Marchenko said.

The minister added that the European Investment Bank (EIB) adjusted its projects in support of the budget in the amount of EUR 668 million, of which Ukraine has already received EUR 400 million.

"We are negotiating on two loan programs with Germany, for a total of $150 million. We signed the memorandum first and we are waiting for the funds to arrive," Marchenko said.

The minister added that negotiations with the French government on a loan of EUR 300 million are ongoing, Canada announced a loan program in the amount of CAD 500 million, and the UK – $500 million.

"Among the grants, it is especially necessary to single out the government of Italy, which in the first days of the war provided us with grant assistance in the amount of EUR 10 million. We also expect grant assistance from the UK, Denmark, Latvia, Lithuania, Iceland and the EU. The total amount of grants that we see is about EUR 360 million. We are actively cooperating with the United States. Even before the war, the possibility of providing guarantees for $1 billion was announced. And we are now working on obtaining them and, if possible, increasing them," the minister said.

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