Ukraine will raise a loan of up to 200 million euros with the principal amount maturing in 5-15 years at an interest rate of up to 4.5 percent per annum from Germany's KfW, according to Cabinet resolution No. 640 of Aug. 12, which has been posted on the government's website.
According to its data, the effective rate of the loan will be slightly higher as the amount of a one-time payment for loan management will come to 0.5 percent of the loan principal – 1 million euros, while payment for funds issue will be 0.25 percent of the non-issued loan amount.
Interest income will be paid every six months, the payment of the loan principal begins after 5 years after the funds are raised, and it is to be completed no later than in 15 years after its issue, according to the approved conditions.
The Cabinet authorized Minister of Finance Natalie Jaresko to draw the loan.
As reported, the Verkhovna Rada in mid-July ratified a memorandum on joint intentions between the government of Ukraine and the government of Germany for an unrelated financial loan totaling 500 million euros, which was signed in Berlin on April 1, 2015.
According to the memorandum, the German government intends to provide necessary guarantees for an unrelated financial credit from KfW in the amount of 500 million euros. The funds will be attracted, in particular, for investment in the restoration of part of Ukraine.
