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The framework agreement was signed in March last year.
The Ukrainian parliament has ratified a framework agreement between the Government of Ukraine and the Government of the Kingdom of Denmark on the general conditions and procedures, organizational measures and financial conditions for the implementation of the Danida Business Finance program, which offers soft loans to Ukraine.
Relevant bill (No. 0039) was backed by 334 MPs with the required minimum of 226 votes, according to an UNIAN correspondent.
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According to the explanatory note to the bill, the framework agreement was signed in March last year. The Danida Business Finance (DBF) program is implemented by the Government of the Kingdom of Denmark and provides for interest-free loans.
"The assistance is provided to developing countries to finance projects in the areas of renewable energy and energy efficiency; water and sanitation. The financing is handled through loans issued by a commercial bank or financial institution with a representative office in the Kingdom of Denmark to the government of Ukraine or Ukrainian businesses against state guarantees. DBF will soften loan conditions by providing assistance, which envisages a subsidy in the form of interest payments for the entire loan period, an export credit premium and bank margin," the explanatory note says.
With DBF's assistances, the loans will be interest-free, and their repayment period will be up to 10 years. They can also cover up to 100% of the project cost.
As UNIAN reported earlier, in March 2019, the then Ukrainian Finance Minister Oksana Markarova and Ambassador Extraordinary and Plenipotentiary of the Kingdom of Denmark to Ukraine Ruben Madsen signed a framework agreement between the governments of the two countries on the conditions and procedures for implementing the Danida Business Finance program in Ukraine.