The Ministry of Finance of Ukraine and the World Bank Group are negotiating on granting new loan guarantees to Ukraine. Satu Kahkonen, the World Bank Country Director for Belarus, Moldova, and Ukraine, said this, as Intrfax-Ukraine reports.
According to the report, those guarantees will allow the government to reduce the borrowing cost on the international markets. In such a way, the government will be able to take loans under a lower percentage.
At the moment, Ukraine uses the loan guarantees at the amount of $750 million. New guarantees will allow the government to borrow around one billion under a lower percentage.
In particular, the second credit tranche under the guarantees of the World Bank is supposed to be $630 million.
As we reported earlier, The National Bank of Ukraine expects for the positive decision of the Board of Directors of the International Monetary Fund(IMF) on the continuation of the cooperation with Ukraine and supply of the first tranche within new stand-by program until December 25.
The credit program for Ukraine in the amount of $17.01 billion was approved by the IMF at the end of April 2014, and the first tranche of Stand-By Arrangement loan in the amount of $ 3.19 billion was granted in early May.