BERLIN - The Ukrainian government signed a memorandum of intent with the German government on an untied financial loan worth a total of 500 million euro and the Framework Agreement with the German Credit Institution for Reconstruction (KfW) at the eighth session of the Ukrainian-German High Level Group on Economic Cooperation in Berlin on Wednesday, an Interfax-Ukraine correspondent reported.
Ukrainian Deputy Prime Minister – Minister of Regional Development, Construction, Housing and Utilities Hennadiy Zubko, who signed the agreement on behalf of Ukraine, said that these funds will be used for the rehabilitation and modernization of the eastern part of Ukraine, including the new construction, reconstruction, overhaul and modernization of infrastructure, energy, heating and water supply, drainage and social facilities, as well as reconstruction and construction of housing.
Zubko recalled that the signing of the memorandum and the framework agreement was the result of the negotiations which were started in August 2014 by President of Ukraine Petro Poroshenko and German Chancellor Angela Merkel, and thanked Germany for the support of Ukraine during the unprecedented historical trials.
The deputy prime minister said that the Ukrainian government was ready to engage in the implementation of the projects of the untied financial loan.
Under the documents signed, individual loans will be used to finance projects on the territories of Donetsk, Luhansk, Dnipropetrovsk, Zaporizhia, Kharkiv and other regions of Ukraine, where a significant number of refugees are registered.
The financial resources can be allocated by a KfW bank in June of 2015. The loan is issued for a term of up to 15 years with a grace period of 5 years.
