Acting Minister of Finance Oksana Markarova has signed amendments to three agreements between Ukraine and the European Investment Bank each of which paves the way to EUR 400 million for projects in Ukraine.
What’s it about?
- The agreement on the project “Development Program for the Municipal Infrastructure of Ukraine” was signed on July 23, 2015, and was ratified according to the Law of Ukraine No. 975-VIII dd. 03.02.2016. According to this agreement, the EIB shall provide a loan divided in up to 36 tranches amounting at least EUR 5 million each with each tranche to be transferred after at least 80% of the previous tranche’s amount have been utilized. In the course of the implementation of this project, it became clear that these terms need to be reviewed. The letter “Abolition of Restrictions and Amendments”, which supplements the agreement and was signed by Oksana Markarova, creates optimal terms for the use of the funds under the Program.
- Amendments to the financial agreement on the project “Main Loan for the Agricultural Sector - Ukraine” (signed on September 28, 2015, ratified according to the Law of Ukraine No. 1530-VIII dd. 20.09.2016) allowing to start the use of the loan which is bound to become a crucial source for the long-term financial support of agriculture in Ukraine.
- According to the financial agreement on the project “Main Loan for Small and Medium-Sized Business and Companies with Middle Level of Capitalisation” (signed on December 24, 2014, ratified according to the Law of Ukraine No. 601-VIII dd. 15.07.2015), the EIB provides a loan to expand funding possibilities for the real sector of the economy, to support the development of the private sector of the economy including small and medium-sized businesses, entities with the middle level of capitalisation and other priority projects like social and economic infrastructure, energy efficiency, reduction of climate change consequences and adaptation to them (till December 24, 2020). Amendments to this agreement will help prolong the availability of the loan and thus increase the number of small and medium-sized businesses which will have access to long-term funding.
What’s the benefit?The implementation of these amendments will contribute to:
- investments in different regions of Ukraine for the modernization and restoration of the housing and municipal infrastructure;
- better funding possibilities for the agricultural sector including small and medium-sized businesses as well as entities with the middle level of capitalization;
- development of the private sector of the economy, especially the projects of small and medium-sized businesses, entities with the middle level of capitalization and other priority projects like social and economic infrastructure, energy efficiency, reduction of climate change consequences and adaptation to them.