Poroshenko Ratifies Agreement With European Investment Bank on $225Mln Loan

The European Investment Bank will provide Ukraine a loan in the amount of 200 million euros for measures to overcome the negative consequences of the conflict in the country's east.

KIEV (Sputnik) – Ukrainian President Petro Poroshenko has ratified an agreement with the European Investment Bank on a loan to Ukraine for $225 million, according to the president’s website.

“According to the financial agreement, the European Investment Bank will provide Ukraine a loan in the amount of 200 million euros for 2015-2020 for a number of measures to overcome the negative consequences of geopolitical events in the eastern regions of Ukraine.”

Ukraine's economy has been strained by the armed conflict in the country's southeast since 2014.

The inflation for this year is predicted to reach 30 percent, according to the Ukrainian National Bank. The national currency, the hryvnia, has been plummeting since February 2014, losing more than 50 percent of its value against dollar.

Kiev has received several aid packages from international financial institutions, including the International Monetary Fund.

The IMF has pledged to transfer $17.5 billion to the country over the next four years, with Kiev receiving the first $5-billion installment last month. In exchange, the Ukrainian authorities promised to implement reforms to restore growth and improve living standards for the people.

The European Union has approved three Macro-Financial Assistance (MFA) operations to the country. The latest package, approved in March, is worth almost $2 billion.