Ukraine, Poland Sign $1-Billion Currency Swap Deal

Ukraine's and Polish National Banks signed a swap line agreement for the zloty-euro currency parity.

KIEV (Sputnik) – The National Bank of Poland has opened a currency swap line for Kiev in the amount of 4 billion zlotys, just over $1 billion, the Ukrainian National Bank said Tuesday.

“The National Bank of Ukraine and the National Bank of Poland have signed an agreement on opening a swap line for the zloty-euro currency parity. The agreement envisages conducting swap operations of up to 4 billion zlotys,” the Ukrainian National Bank’s press service said.

The funds received under the deal on the swap line’s opening will be used to replenish international reserves of Ukraine, the cost of which from the beginning of 2015 has already increased by half, mainly thanks to the assistance of Ukraine’s international partners, the press service said, citing head of the National Bank Valeria Gontareva.

Ukraine's economy has been increasingly strained by political turmoil and a year-long armed conflict in the country's east. Since the beginning of the conflict, the country has increasingly been relying on loans from foreign institutions and countries.

Ukraine’s debt amounts to estimated $70 billion, of which some $40 billion the country owes to international money lenders.