The European Commission provided Ukraine with the second tranche within the fourth program of the EU macro-financial aid in the sum of €500 million. The funds will be received in the form of the loan at 0.125 annual interest rate with the maturity until June 10, 2035, as the Cabinet of the Ministers reported.
Besides, the allocated funds will seek to finance the expenses of the state budget and will facilitate the reduction of the external financial pressure on Ukraine and the improvement of the balance of payments of the country.
“Considering the necessity of proper financing of the measures to overcome the negative economic consequences of the spread of acute respiratory disease Covid-10, the receiving of the mentioned funds will definitely facilitate the maintenance of the financial stability in Ukraine,” the government said.
The receiving of the mentioned concessional credit resource became possible after fulfillment by Ukraine (at the end of 2019) of all 12 special conditions on the implementation of the events on the reforms in the next spheres:
- counteraction and fight against corruption;
- social policy;
- prevention of money laundering;
- implementation of customs policy;
- reforming of tax and customs services;
- corporate management in the state banks;
- counteraction erosion of tax base and withdrawal of income from taxation;
- reduction of the high-level non-performing loans in the banking system and the beginning of the new cooperation program with the IMF.
According to Prime Minister of Ukraine Denys Shmygal, Ukraine fulfilled all conditions for the implementation of the reforms and strengthened its status as the responsible state. He also noted that the received funds will be transferred to the state budget for the expenses, including the overcoming of the consequences of the coronavirus pandemic.
As we reported, the Executory Board of the International Monetary Fund approved the 18-month-long stand-by funding program for Ukraine. The Ukrainian government will, thus, get access to 3.6 billion SDR (about five billion dollars).