The Cabinet authorized the Ministry of Finance to borrow $630 million

Кабмин разрешил Минфину одолжить $630 млн

The Cabinet of Ministers of Ukraine with the purpose of implementation of the state budget for the year 2019 have allowed the Ministry of Finance to carry out external financial borrowing by obtaining loans for the amount in euros exceeding the equivalent of $630 million.

The corresponding decree of the Cabinet of Ministers No. 107 dated February 20, published on the official government portal.

“External public borrowing will be carried out by raising loans in the total amount in euros exceeding the equivalent of $630 million of Commitments to extend credit in the amount in euros does not exceed the equivalent of $375 million, the guarantee is provided by the International Bank for reconstruction and development under the loan agreement between Ukraine and the International Bank for reconstruction and development, Deutsche Bank AG, London Branch and TMF Global services (UK) Limited,” – said in comments to the document.

According to the decree of the government of the terms of the loan, the loan is drawn at the interest rate of 5.9% per annum, the Commission for credit organization amounts to 0.8%.

The loan is provided in two tranches. Tranche A is planned to attract for a period of four years, and tranche – for ten years. While the grace grace period of repayment of tranche B of the loan is four years and six months after his involvement with the subsequent repayment (amortization) semiannually according to the schedule, which is defined in the credit agreement.

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