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The Cabinet of Ministers of Ukraine on February 11 issued a resolution stipulating that state external borrowings in 2016 shall be made in the form of loans.
The Ukrainian government also authorized Ukrainian Finance Minister Natalie Jaresko to conclude and sign loan agreements.
According to the terms set out in the resolution, the amount of a loan shall not exceed $50 million, with an interest rate set at 2.5% per annum the highest and the maturity period being no more than five years.
The payment of interest accrued under such loan shall become due every six months, and the loan shall be repaid and serviced at the expense of state budget funds.
Other borrowing terms shall be determined by a relevant agreement and documents that are related to the transaction.
As UNIAN reported earlier, this year Ukraine plans to raise about $10 billion in financial assistance, including $5.8 billion from the International Monetary Fund (IMF) and over $1.5 billion in loans under World Bank's new programs.
The funds attracted from international financial institutions, particularly from the IMF, will be used to replenish the country's gold and forex reserves. Thus, the National Bank of Ukraine forecasts that international reserves will grow to $19.6 billion by the end of 2016, and to $22.3 billion in 2017. Currently, the NBU's forex reserves are estimated at $13.3 billion.