Ukraine, EU Agree on $811 Mln Stabilization Loan

© Fotolia / bernanamogluUkraine, EU Agree on $811 Mln Stabilization Loan
Ukraine, EU Agree on $811 Mln Stabilization Loan - Sputnik International
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Ukraine and the European Union have signed a memorandum of understanding for Brussels to loan Kiev 610 million euros ($811 million) in macro-financial assistance, Ukraine’s UNIAN news agency reported on Monday.

KIEV, February 25 (RIA Novosti) – Ukraine and the European Union have signed a memorandum of understanding for Brussels to loan Kiev 610 million euros ($811 million) in macro-financial assistance, Ukraine’s UNIAN news agency reported on Monday.

The deal is conditional on the European Commission confirming Ukraine is satisfactorily implementing financial arrangements with the International Monetary Fund.

The memorandum was signed by Ukrainian Finance Minister Yuriy Kolobov, National Bank of Ukraine Chairman Ihor Sorkin and European Commission Vice-President for Economic and Monetary Affairs Olli Rehn, at a Ukraine-EU summit in Brussels.

The loan will be allocated in 100, 10, 250 and 250 million euro tranches and has a repayment period of 15 years. The interest rate on the loan was not disclosed.

In July 2010, the IMF approved a $15.15-billion standby loan for Ukraine "in support of the authorities' economic adjustment and reform program."

Ukraine has so far received two tranches worth a total of over $3.4 billion. The provision of further aid was suspended in December 2010.

The IMF demanded Kiev increase domestic gas prices, an extremely unpopular measure in Ukraine which the authorities have refused to carry out.

 

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