Canada to provide Ukraine with US$300 million of additional preferential loan

Serhii Marchenko, Minister of Finance of Ukraine, signed the fourth additional agreement with the Government of Canada on an additional loan of CAD 400 million (almost US$300 million) on 11 October. 

Source: press service for the Ministry of Finance 

Details: It was noted that the funding would be used to cover priority expenditures of the state budget of Ukraine.

Quote: "Canada is one of the leaders in supporting Ukraine and a strategic partner that has provided significant assistance since the first days of the full-scale invasion. Direct budgetary support since February 2022 has reached more than US$5 billion."

More details: The additional loan is provided for 10 years, with an interest rate of 1.5% per annum. The grace period is 4.5 years from the date of disbursement.

The funds are expected to be transferred to the general fund of the state budget in the near future. 

Background: During the first year of the agreement on discounts for parcel delivery, the volume of parcels between Ukraine and Canada increased by more than 25%, so Ukrposhta, Ukraine’s state-owned postal operator, and its partners decided to extend the discounts.

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