The government has outlined the conditions for obtaining $20 billion from the U.S. backed by Russian assets.
Ukraine aims to secure $20 billion from the United States through a special World Bank fund.
2024-12-10 10:46:16https://ua.news/ru/ukraine/kabmin-opredelil-usloviya-polucheniya-20-mlrd-dollarov-ot-ssha-pod-rossijskie-aktivy
These funds will not need to be repaid if Ukraine does not receive reparations from Russia.
This is stated in the Cabinet of Ministers' resolution dated December 6, 2024, No. 1388.
The resolution establishes the main conditions for a conditional obligation deal, through which Ukraine will receive a loan from the American Federal Financing Bank for 40 years, amounting to up to $20 billion.
The conditional obligation deal will be executed through a Certificate Purchase Agreement between Ukraine, the Federal Financing Bank, and the U.S. Agency for International Development (USAID), along with a Loan Guarantee and Repayment Agreement.
The funds will be provided by transferring to the Financial Intermediary Fund for Facilitating Resource Investment in Strengthening Ukraine, established by the World Bank on October 10, 2024.
The loan amount will accrue interest at a rate equal to the sum of a fixed rate of 1.3% per annum and the current average yield on outstanding U.S. Treasury bills.
Repayment and servicing of the loan will be funded from sources other than the state budget of Ukraine, particularly from revenues generated from frozen assets of the Russian Federation, in accordance with the Credit Cooperation Mechanism for Ukraine established by the agreement with the EU.
"The Federal Financing Bank or USAID has limited rights to demand repayment of the loan from the state budget, particularly in the event of reimbursement (compensation) to the state budget for damages caused by the armed aggression of the Russian Federation against Ukraine," the resolution states.
Final repayment of the loan is planned to be completed 40 years from the date of the debt certificate issuance.
The U.S. government agreed to allocate its share of $20 billion to the overall G7 credit for Ukraine, which will be provided under guarantees from the profits of frozen Russian assets.
Prior to this, the EU Council completed the procedure on October 23 to approve a macro-financial loan of €35 billion to Ukraine from frozen Russian assets.
For all the insights and the latest information, check our Telegram channel, along with bonuses and quick updates.
This is stated in the Cabinet of Ministers' resolution dated December 6, 2024, No. 1388.
The conditional obligation deal will be executed through a Certificate Purchase Agreement between Ukraine, the Federal Financing Bank, and the U.S. Agency for International Development (USAID), along with a Loan Guarantee and Repayment Agreement.
The funds will be provided by transferring to the Financial Intermediary Fund for Facilitating Resource Investment in Strengthening Ukraine, established by the World Bank on October 10, 2024.
The loan amount will accrue interest at a rate equal to the sum of a fixed rate of 1.3% per annum and the current average yield on outstanding U.S. Treasury bills.
Repayment and servicing of the loan will be funded from sources other than the state budget of Ukraine, particularly from revenues generated from frozen assets of the Russian Federation, in accordance with the Credit Cooperation Mechanism for Ukraine established by the agreement with the EU.
"The Federal Financing Bank or USAID has limited rights to demand repayment of the loan from the state budget, particularly in the event of reimbursement (compensation) to the state budget for damages caused by the armed aggression of the Russian Federation against Ukraine," the resolution states.
Final repayment of the loan is planned to be completed 40 years from the date of the debt certificate issuance.
The U.S. government agreed to allocate its share of $20 billion to the overall G7 credit for Ukraine, which will be provided under guarantees from the profits of frozen Russian assets.
Prior to this, the EU Council completed the procedure on October 23 to approve a macro-financial loan of €35 billion to Ukraine from frozen Russian assets.
For all the insights and the latest information, check our Telegram channel, along with bonuses and quick updates.