Ukraine has received a long-term loan at preferential terms from Japan
amounting $331 million. The loan is part of the joint project with the World
Bank “Development Policy Loan-II” (DPL-II) and comes from the Japanese Agency
for International Cooperation.
This loan provided at preferential terms is a proof that Ukraine is
actively implementing important structural reforms for its economy. Receiving
of such a loan became possible due to implementation of 10 structural reforms
including the liquidation of “loopholes” in the tax system by introducing
electronic VAT administration, reform of the gas market as well as establishing
efficient control mechanisms not only for the expenses, but also for the
revenues of the state budget (with this purpose, the powers of the Court of
Audit were expanded) etc.
The loan from Japan will be transferred to the general fund of the state
budget and will be used for financing the key needs of Ukraine including social
expenditures and implementation of reforms.
Key facts on the loan:
∙ duration – 20 years with a six-year grace period when Ukraine
will not be making any payments to the creditor;
∙ interest rate – Libor + 0.05%, which is less than 1% p.a.;
∙ payments to the creditor are to be effected twice a year.
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