Minister of Finance Oksana Markarova and Ambassador of the Kingdom of Denmark to Ukraine Ruben Madsen have signed the Framework Agreement between the Government of Ukraine and the Government of the Kingdom of Denmark on the general terms and procedures, organizational and financial measures concerning the implementation of the Danida Business Finance Programme (DBF) in Ukraine.
The DBF Programme is implemented by the Government of Denmark as part of its development cooperation and includes zero-rate loans to finance projects for renewable energy, energy efficiency, water supply and wastewater treatment.
“The signing of this Agreement is the result of a long and scrupulous work done by the two parties. Cooperation with our Danish partners will let us effectively obtain funding for the implementation of new projects aiming to ensure a sustainable development and economic growth. This step definitely extends investment opportunities for Ukraine”, said Minister of Finance Oksana Markarova.
Ruben Madsen, Ambassador of the Kingdom of Denmark in Ukraine, said: “I am gald that the Danida Business Finance Programme is now open for Ukraine. This is a very favourable loan programme with preferential terms that is only available to countries like Ukraine that have a high priority for Denmark. It will become an important element of the already existing comprehensive support programme that Denmark is implementing in Ukraine. I am confident that the Danida Business Finance Programme will make a substantial contribution to the improvement of the public infrastructure in Ukraine, employment and, accordingly, to the acceleration of the economic growth as well as will strengthen the business ties between our countries.”
The Agreement will make the loan terms more favourable for Ukraine thanks to the subsidy provided by the Government of Denmark to compensate the interest rates for the entire loan term, the export loan surcharge and the bank commission. The funding under this Agreement will be made available by a commercial bank or a financial institution with the representative office in Denmark in form of government-backed loans provided to the Government of Ukraine or Ukrainian companies.
According to the Danida Business Finance Programme, loans must meet several requirements: they must be provided at a zero interest rate, their maturity term must be up to 10 years after the completion of the respective project, loans shall be provided in EUR or USD and cover up to 100% of the project costs.
The DBF partnership will promote the development and enhancement of bilateral cooperation between Ukraine and the Kingdom of Denmark as well as make it possible to gain new investments for long-term infrastructure projects in Ukraine.