Ukraine and Germany in January 2015 will prepare a statement on an untied loan from Germany to rebuild infrastructure in Donbas, and an agreement on the German government providing guarantees for the loan.
The agreements were made during talks between President of Ukraine Poroshenko and German Chancellor Angela Merkel, Vice Prime Minister and Minister for Regional Development, Construction, Housing and Construction Hennadiy Zubko said.
“Pursuant to the agreements, the governments of Germany and Ukraine are taking measures to prepare a joint statement on issuing Ukraine an untied financial loan worth EUR 500 million. These funds will be spent on the rebuilding and modernization of the power, heat, water supply and sewage infrastructure, and on the restoration and construction of schools and hospitals,” Zubko said.
In his words, projects to rebuild Donbas will be coordinated by a high-level bilateral group.
The loan will be extended by KfW Bankengruppe, whom the Regional Development, Construction, Housing and Construction Ministry is currently working with on loan preparations, in accordance with the Ukrainian law.
“All the necessary procedures for approval and the beginning of the loan issue will be completed tentatively in January 2015,” Zubko added.
