Canada Announces $200Mln-Low-Interest Loan to Ukraine

Earlier Canada has already supplied Kiev with a range of non-lethal security assistance and equipment.

WASHINGTON, January 28 (Sputnik) — Canada is going to provide an additional $200-million-low-interest loan to Ukraine, bringing the total value of loan agreements between the countries to $400 million, Canadian Prime Minister Stephen Harper's Press Office said in a Wednesday press release.

"The second $200 million low-interest loan announced today will include a provision enabling Canada to perform an audit of funds used during the course of the agreement, as well as an obligation for Ukraine to provide regular reports detailing the funds’ use," the statement said.

The statement added that the funds will be disbursed following agreement on the terms and conditions of the first $200-million-loan that Ukraine received back in September 2014.

Additionally, the country has already supplied Kiev with a range of non-lethal security assistance and equipment.

"The second loan, which will be delivered by Export Development Canada, is part of a broader package of additional international assistance for Ukraine, and is conditional on the approval of the next review of Ukraine's International Monetary Fund (IMF)-supported program," the prime minister's press office said.

The internal conflict in Ukraine has had a direct impact on the country's economy. The Kiev authorities are attempting to rescue the economy with international loans.

In spring 2014, the International Monetary Fund (IMF) promised Kiev a total of $17 billion in bailout loans, to be paid over the course of two years. A number of western countries allocated funds to Ukraine to help the country rebuild its economy and enact necessary structural reforms.