Today, the Government has approved the draft laws “On the Ratification of the Framework Agreement between the Government of Ukraine and the Government of Hungary on Providing a Loan as a Part of Dedicated Assistance” and “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2017”.
These draft laws were prepared by the Ministry of Finance to implement the government agreement signed by Prime Minister Volodymyr Groysman in Budapest last year.
What is it about?
The Government approved the draft laws which make it possible to receive a loan from Hungary amounting 50 million Euro. According to the proposed amendments to the state budget for 2017, it is planned that the state-owned company “Ukravtodor” shall ensure the preparation and implementation of relevant contracts.
The loan shall be re-paid from the state budget of Ukraine.
What is the advantage?
The above agreement between Ukraine and Hungary makes it possible to provide a loan at preferential terms amounting 50 million Euro for investment projects related to the improvement of motorways to the Ukrainian-Hungarian border.
- on November 24, 2016, the Governments of Ukraine and Hungary signed a framework agreement on providing a loan as a part of dedicated assistance.
The key loan terms include the following:
- total loan amount – up to 50 million Euro;
- maturity term – 18.5 years;
- extension for the re-payment of the loan and the interest rate – 1.5 years;
- interest rate – 0%.