Ukraine to receive concessional loan from South Korea for first time

On October 2, Ukraine signed a loan agreement with the Export-Import Bank of Korea to attract USD 100 million, which will be the first financial support provided by the Republic of Korea.

The Finance Ministry of Ukraine announced this on its website, Ukrinform reports.

“Today, on 2 October, Minister of Finance Sergii Marchenko signed a loan agreement with the Export-Import Bank of Korea to attract USD 100 million,” the report says.

As noted, the loan is for a 20-year term with an interest rate of 1.0% per annum. The grace period is 5 years from the date of signing the loan agreement.

“The USD 100 million loan will be the first financial support provided by the Republic of Korea to the State Budget of Ukraine,” the report says.

Finance Minister of Ukraine Sergii Marchenko said that further projects to be implemented within the framework of bilateral cooperation with the Korean side will be aimed at supporting the economic development of Ukraine and contribute to further partnership between the two countries.

As Ukrinform reported, in April 2024, Ukraine and the Republic of Korea signed an agreement to provide Ukraine with soft loans equivalent to USD 2.1 billion over 2024-2029. The funds from the Economic Development Cooperation Fund (EDCF) of Korea will be used for Ukraine's recovery projects.

Photo credit: Finance Ministry