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The Verkhovna Rada of Ukraine adopted a draft law No. 0048 "On Ratification of the Memorandum on Common Intentions of the Government of Ukraine and the Government of Germany Regarding the Untied Loan Guarantees in the Amount of EUR 500 Million," according to an UNIAN correspondent.
Under the Memorandum, the German government shall provide Untied Loan Guarantees (UFK) of the Credit Institution for Reconstruction (KfW) in the amount of EUR 500 million. These funds will be allocated for restoration and modernization of infrastructure of eastern Ukraine in such spheres as transport, energy, heating, energy efficiency, water and sanitation, social infrastructure, rehabilitation and housing.
266 deputies voted for this document, with 226 votes necessary for it to be passed.
Vice Prime Minister, Minister of Regional Development, Construction and Housing and Communal Services Gennadiy Zubko said that the loan would mature in 15-years, with a five-year grace period.
In particular, according to Zubko, the adoption of this bill will allow creating a legal basis in Ukraine for obtaining a part of untied loan guarantees of KfW worth of EUR 300 million for financing priority projects on rehabilitation and modernization of the infrastructure in eastern Ukraine, which will be jointly agreed by Ukrainian and German parties within the framework of a bilateral high-level group, as well as ensure the conclusion of separate agreements on provision of a part of the financing in the amount of EUR 200 million for the needs of the general fund of the state budget.
As UNIAN reported earlier, the bill was submitted by Ukrainian President Petro Poroshenko to the Verkhovna Rada for further consideration on July 8, 2015.