Ukraine and the European Union have signed a memorandum of understanding and a bilateral loan agreement aimed at granting Kiev a one billion euro macrofinancial aid during a visit by the Ukrainian delegation led by Prime Minister Arseniy Yatsenyuk to the European Commission in Brussels on Tuesday.
The document was signed by Ukraine's Economic Minister Oleksandr Shlapak and the EC's Vice President Siim Kallas.
Under the memorandum, Ukraine will be granted the loan in two tranches, 500 euro each. The first tranche will be paid after the memorandum and the loan agreement take effect, the second one after the assessment of the program implementation.
The memorandum also involves monitoring how the macrofinancial aid is being implemented.
The loan agreement sets technical aspects for granting and repaying the borrowings. In particular, the maturity period is 15 years. The agreement also sets the loan accounts and repayment terms, the governing law and jurisdiction.
The loan agreement will take effect once the EC receives a formal notice in the form of a legal conclusion by the Ukrainian Justice Ministry about compliance with all constitutional and legal requirements for the document to take effect.
The explanatory note to the documents says that the EU's 1-billion euro macrofinancial aid program is part of the EU's broader financial aid for Ukraine aimed at maintaining stabilization processes in the Ukrainian economy, in particular, its balance of payments.
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