Ukraine Embassy in U.S. explains reports on Washington’s possible assistance cut
Information on 68.8% U.S. assistance decrease to Ukraine should be viewed in correlation with American financial assistance in the form of a loan guarantee, the Ukrainian Embassy in the United States wrote on Facebook.
"In 2016, the U.S. Government provided to Ukraine $1 billion loan guarantee that was funded from the U.S. budget in the amount of about $300 million,” the statement reads.
In 2018, "due to the achieved financial stability and expected economic growth in Ukraine," the sides do not envisage financial assistance from the United States in the form of a loan guarantee, the embassy wrote.
Therefore, actual reduction of American assistance to Ukraine in 2018 is around 30% and allows to continue most of the long-term programs of assistance, that are already in progress, according to the diplomats. "The United States Administration’s proposed assistance to Ukraine is almost 50% from all American assistance to Europe and Eurasia, that was cut by 57,4%," the statement reads.
Read alsoIMF promises Ukraine another $4.4 bln by year-end for reforms on timeThe embassy expressed hope "that the United States Congress in the Federal budget for 2018 will keep American assistance to Ukraine at least on 2016 level, that requires an increase of about $ 90 million."
As UNIAN reported earlier, with a reference to Foreign Policy, U.S. President Donald Trump’s vow to put "America first" includes a plan to drastically cut assistance to developing countries and merge the State Department with USAID, according to an internal budget document and sources.
Some of the cuts appear directed at countries that had been regarded as strategically important. For instance, foreign assistance to Ukraine, which is used to encourage political and economic reform, is facing a 68.8% cut.
However, the publication notes that given the steep bipartisan opposition to slashing foreign assistance, Congress likely will not consent to the entire proposed reduction.