Ukraine's government decides to raise $530M from IBRD

The Cabinet of Ministers of Ukraine has approved the decision to raise $530 million as additional financing from the International Bank for Reconstruction and Development (IBRD).

That's according to the press service of Ukraine's Ministry of Finance, Ukrinform reports.

"Today, on September 10, 2022, at a government meeting, a decision was made to attract $530 million in additional financing as part of the implementation of a joint project with the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA) 'Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine'," the report said.

Government members also supported a draft presidential decree on the formation of a Ukrainian delegation to participate in negotiations with the IBRD regarding the conclusion of a loan agreement between Ukraine and the IBRD, as well as the authorization of Ukraine's Minister of Finance Serhiy Marchenko to sign the agreement.

The loan will be granted on preferential terms against the guarantees of the United Kingdom and Denmark: the loan repayment period is 19 years with a five-year grace period. The interest rate is 0.25% per annum (charged on the unused portion of the loan).

The funds will be used to pay salaries to employees of the budget sector, provide pension payments and finance certain programs of state social assistance, such as the payment of housing and utility services, support for low-income families, disabled children and those disabled from childhood, IDPs, as well as the payment of medical services under the program medical guarantees, etc.