Photo from UNIAN
Ukrainian Ministry of Finance is set to raise $1 billion by issuing the U.S.-backed bonds in November this year, according to the ministry's website.
As reported earlier, in May 2015, Ukraine and the United States signed an agreement on U.S. loan guarantees for the issue of Ukrainian eurobonds worth $1 billion within the framework of a previously announced $2 billion loan-guarantee package. It is reported that the U.S. could allocate up to $1 billion in additional loan guarantees at the end of 2015 if the reform program is implemented.
Ukraine’s Finance Ministry says it expects to receive over $3.2 billion in financial assistance from international donors and partners, in addition to revenue from issued eurobonds.
According to the Finance Ministry, the allocation of two tranches worth $500 million each from the World Bank is expected in late August and late September. In addition, EUR 600 million in loan is to be provided by the European Commission in Q4, $300 million by the Japanese government in the end of October, EUR 200 million by the German government in late August, as well as NOK 200 million by the Norwegian government in October.
As UNIAN reported earlier, the International Monetary Fund (IMF) approved in March a program of financial assistance for Ukraine, designed for four years, under the Enhanced Extended Fund Facility (EFF). The program is said to open to Ukraine an access to a common package of financial assistance of up to $40 billion within the next four years.
In January 2015, Ukraine and the United States signed the declaration on providing Kyiv with the loan guarantees of the U.S. government in the amount of $2 billion. It was reported that the loan-guarantee package would be expanded to $3 billion provided a successful implementation of reforms in the country that are related to combatting corruption, energy sector and business climate improvement.
A total of $1 billion was raised by Ukrainian government in the beginning of June through issuance of U.S.-backed eurobonds for five years with a yield of 1.847% per annum.
Previously, Ukraine placed five-year U.S.-backed eurobonds worth $1 billion in the middle of May 2014 with a yield of 1.844% per annum.