U.S., Canada, Germany promise almost USD 1.6 bln financial support for Ukraine

The U.S. is working to provide a state guarantee for
up to USD 1 bln  loan “to support key reforms” in Ukraine, Secretary of
State Antony Blinken tweeted on Feb. 14 after a call with his Ukrainian
counterpart Dmytro Kuleba. Kuleba, in turn, thanked the U.S. for the decision
to provide the macrofinancial support. Recall, the U.S. government provided financial
guarantees for Ukraine in 2014-2016, and Ukraine repaid the last loan under
such guarantees in 2021.

On top of that, German Chancellor Olaf Scholz
announced in Kyiv the upcoming provision of a EUR 150 mln loan tranche for
Ukraine, as well as the possibility of a new loan, according to
Interfax-Ukraine report on Feb. 14.

Moreover, the Canadian Finance Minister announced on
Feb. 14 that the government would offer a loan for Ukraine for up to CAD 500
mln.

Recall, last week, French president Emmanuel Macron announced on a EUR 200 mln loan
to the Ukrainian government and about EUR 1 bln in financial guarantees for
projects involving French companies.

Alexander Paraschiy: The support promises to the Ukrainian government released over the
last week amount to about USD 1.8 bln. This, as well as the EU’s EUR 0.6 bln announced MFA tranche disbursement will refinance almost all of MinFin’s
international debt repayment obligations for the entire year. Access to such
financial backing (if fully realized) significantly decreases Ukraine’s
short-term risks and should enable the fast recovery of sovereign bond prices
as soon as the threat of Russian escalation recedes from its currently frenzied
state. We also note that provision of all the announced loans is not secured.