Germany to issue EUR 500 million loan to Ukraine

Ukraine and Germany will draw up a statement in January on Berlin's issuing an untied loan to Kiev for the restoration of infrastructure in Donbass and an agreement on providing German governmental guarantees for this.

Ukraine and Germany will draw up a statement in January on Berlin's issuing an untied loan to Kiev for the restoration of infrastructure in Donbass and an agreement on providing German governmental guarantees for this.

Ukrainian Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Minister Hennadiy Zubko said Ukrainian President Petro Poroshenko and German Chancellor Angela Merkel had reached this agreement during their recent negotiations.

"In pursuance of the agreements, the German and Ukrainian governments are taking steps to draw up a joint statement on issuing an untied financial loan in an amount of EUR 500 million to Ukraine. This money will be allotted for the restoration and modernization of infrastructure involved in supplies of electric power and heating, water supply and disposal, and the restoration and construction of schools and hospitals," Zubko said.

Donbas restoration projects will be coordinated within the framework of a high-level bilateral group, he said.

 

The loan will be provided by KfW Bankengruppe, with which the Ukrainian Regional Development Ministry is preparing the deal in compliance with Ukrainian procedures and law, he said.

"All the necessary clearance procedures will be completed and the loan's issuance will begin roughly in January 2015," Zubko said.

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