REUTERS
Finance Ministry signed a loan agreement with Germany’s state-owned bank KfW on Thursday morning on granting Ukraine a EUR 200 million loan aimed at supporting the Individuals’ Deposit Guarantee Fund, according to an UNIAN correspondent.
“The loan agreement will allow millions of Ukrainians access to their deposits in insolvent banks," Finance Minister Natalie Jaresko said during the signing ceremony in Kyiv.
She recalled that Ukraine nearly 50 Ukrainian banks have gone bankrupt, which created a significant problem for the banking system and depositors. "Now we will be able to strengthen the position of the Individuals’ Deposit Guarantee Fund," said Jaresko
The loan is part of a loan package of EUR 500 million provided by the German government in the spring of this year, Ukraine. The remaining amount of the loan will be allocated for several regions and provided as follows: the order of 210-220 million euros Ukraine may receive before the end of 2015, the remaining part - in the beginning of 2016. The funds are expected to be used to implement projects in the energy, infrastructure and the purchase of necessary goods for projects.
The loan was engraved in the 2015 state budget. Interest rate is set at a maximum of 4.5% per annum, while one-time payment for loan managegent is under EUR 1 million.
Grace period is five years, while the total repayment period is 15 years.
Member of the KfW Management Committee Roland Siller noted that the loan is another step to support the reforms in Ukraine. "Stabilization and trust are essential in difficult economic times. The signing of this agreement will restore citizens' confidence in the banking system of Ukraine," said Siller.
Read alsoUkraine signs loan agreements worth total of $800 mln with World Bank, JapanAs UNIAN reported earlier, the Verkhovna Rada of Ukraine ratified in July the memorandum with the German government for allocation of a EUR 500 million loan.