Ukrainian Parliament ratified a number of loan agreements

This article deals with ratification of several #loan agreements by Ukraine, which are aimed at stabilizing the #economy of Ukraine.

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On 03 February 2016, the Verkhovna Rada of Ukraine adopted a number of laws ratifying several loan agreements.

Thus, the agreement with the European Investment Bank, pursuant to which Ukraine will get EUR 400 million for development of municipal infrastructure, in particular for projects on centralized heating, centralized and decentralized water supply, drainage, energy efficiency of administrative buildings, exterior lighting settlements and household waste management. It is expected that the European Investment Bank will provide half of the investment programme value, while the remaining half will be covered through attraction of financing from other international financial institutions, investment grants and own funds of final beneficiaries.

In addition, the Parliament also ratified the intergovernmental Ukrainian-Polish agreement on provision of a loan to Ukraine in the amount of EUR 100 million. The funds will be used for financing road infrastructure projects and installation of checkpoints on the Ukrainian-Polish border and implementation of other projects agreed between Ukraine and Poland.

Also, the agreement on provision of approximately USD 300 million to Ukraine from the government of Japan was ratified. It is planned that the funds will be spent on economic reforms in Ukraine.

Moreover, a credit facility in the amount of EUR 14 million from the government of Germany for updating Ukrainian natural reserves was approved by the Parliament.

We note that in 2015, Ukraine received two out of total four tranches from the International Monetary Fund under the Extended Fund Facility Arrangement, which was approved in March 2015 and provides for an overall financing of USD 17.5 billion over two years. The third and fourth tranches of funds from the International Monetary Fund are expected to be received by Ukraine in the first half of 2016. However, while the third tranche was initially scheduled to take place in December 2015, no exact dates of such tranches have been yet announced by the International Monetary Fund.

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