Ukraine signs first loan agreement for US$50 billion from G7
Ukrainian Finance Minister Serhii Marchenko has signed an agreement with the European Union to provide Ukraine with macro-financial assistance worth up to €35 billion under the G7 initiative.
Source: Ministry of Finance of Ukraine
Details: The uniqueness of the agreement lies in the fact that the loan will be repaid from the proceeds of frozen Russian assets in the EU, making it practically non-refundable for Ukraine. The final amount of assistance will be determined after the contributions of all countries participating in the initiative are approved.
Ukraine's signatory is Andrii Pyshnyi, Head of the National Bank of Ukraine, and the EU's is Valdis Dombrovskis, Vice President of the European Commission.
If the United States provides the promised US$20 billion, the final amount of aid from the EU will be about €18 billion – €1.5 billion monthly until 2025.
In order to receive aid, Ukraine has to implement 14 measures in various areas: macro-financial stability, state-owned companies, public administration, energy, rule of law and anti-corruption, and defence industry.
Background: The Ukrainian Parliament has adopted amendments to the Budget Code (draft law No. 12232) that introduce the concept of "contingent debt obligations".
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