REUTERS
The loan is granted for 20 years with a 6-year grace period, with less than 1% annual interest rate.
Ukraine has received funds of a long-term loan from Japan’s government totaling $331 million in the framework of a joint project with the World Bank called the Second Development Policy Loan (DPL II) for economic reforms.
As reported on the website of the Ministry of Finance of Ukraine, the money provided through the Japanese Agency for International Cooperation has been put in the general fund of the state budget.
Read alsoJapan gives UAH 380 mln for Kyiv's Bortnychi water treatment plantThe Finance Ministry emphasizes that getting the Japanese loan was possible due to the implementation by Ukraine of all DPL II conditions and carrying out a series of structural reforms, including the introduction of electronic VAT administration, the gas market reform, the establishment of effective mechanisms for control over the budget spending and revenues.
According to the Ministry, the funds will be allocated for improving the efficiency and transparency of the public sector, deregulation and improving the business environment, and the overall improvement of the investment climate. Also, these funds will help to finance the country’s priority needs, including social spending and key reforms.
The loan is granted for 20 years with a six-year grace period, the interest rate is set at Libor + 0,05%, which is less than 1% annually.
As UNIAN reported earlier, Ukraine and Japan have ratified a loan agreement for Ukraine to receive Second Development Policy Loan (DPL II) for economic reform in the amount of $300 million early March. Then Finance Minister Natalie Jaresko said that, after the ratification, the agreement will come into effect in March, while the disbursement of funds is expected in April of this year.