Finance Ministry says EIB loans to help solve social problems in Donbas

Deputy Finance Minister of Ukraine Oleksandr Kava says European Investment Bank (EIB) loans will help solve a number of social problems in Donbas, eastern Ukraine, as well as improving the quality of life of local residents.

Read alsoPM Shmyhal says first concession highway to be built soonThe official made the comment during an online meeting with EIB representatives where they agreed on further tools and stages to implement the project "Ukraine Recovery Program," the ministry's press service said in a statement on April 14.

"In my opinion, it's important to solve acute social problems and improve the quality of life of Donbas residents. This loan program provides such an opportunity. More than a million residents in eastern Ukraine are already enjoying positive results of its implementation," the press service quoted Kava as saying on April 14.

In particular, the EIB loans within the program are being used in Donetsk and Luhansk regions to finance the reconstruction and upgrading of 156 projects, including 28 healthcare institutions, 83 schools and kindergartens, as well as the launch of two trolleybus routes with new vehicles in the town of Slovyansk.

"We appreciate the fact that our international partners from the European Union are actively helping us to develop and restore infrastructure in eastern Ukraine. We plan to further strengthen the EU's participation in the restoration of Donbas infrastructure via grant funds," he added.

Background

• In December 2020, the Cabinet of Ministers and the European Investment Bank signed a financial agreement related to the "Ukraine Recovery Program" project.
• This project is the extension of the Ukraine Early Recovery facility, which was signed with the EIB in 2014.
• The new project is aimed at financing the restoration of social and transport infrastructure in the regions affected by the military conflict in eastern Ukraine, as well as those that have experienced the significant influx of internally displaced persons.
• The agreement provides for a EUR 340 million loan for socially important projects, in particular, housing, rehabilitation of educational and healthcare institutions, water supply and sewage systems, energy facilities, and transport projects.