Germany to Allocate $590Mln to Ukraine for Infrastructure Restoration: Kiev

MOSCOW, January 7 (Sputnik) — Germany will allocate 500 million Euros ($591 million at the current exchange rate) to Ukraine for infrastructure restoration, Ukrainian government portal reported Wednesday following Ukrainian Prime Minister Arseniy Yatsenyuk’s meeting with German Vice Chancellor Sigmar Gabriel in Berlin.

“During the meeting a joint statement was signed between the Government of Ukraine and the Federal Government of Germany on granting the credit guarantees worth Eur 500 million. From the Ukrainian side the document was inked by the Minister of Economic Development and Trade of Ukraine Aivaras Abromavicius, from Germany — by State Secretary at the German Federal Ministry for Economic Affairs and Energy Matthias Machnig,” a statement on the website reads.

In the course of the Ukrainian delegation’s two-day visit to Berlin, Yatsenyuk is also expected to meet with the Federal President of Germany Joachim Gauck and Federal Chancellor of Germany Angela Merkel.

The loan is granted for a period of 20 years at a low interest rate. Yatsenyuk has stated that money will mainly be used for Donbas reconstruction. Eastern Ukrainian regions have suffered severe humanitarian crisis due to the military operation launched by Kiev in April against local independence supporters who argued the government that came to power after a February coup was illegitimate.

As a result of the ongoing crisis in the country, Ukraine has found itself on the verge of a default and tried to rescue its economy through international loans. In spring 2014, the International Monetary Fund promised Kiev a total of $17 billion in bailout loans, to be paid over the course of two years.