Ukraine Cabinet approves USD 630 mln loan under WB guarantee
22 February 2019
Ukraine’s Cabinet approved on Feb. 21 the conditions of
a new loan that the Finance Ministry is planning to secure under a USD 375 mln
guarantee from the World Bank. The loan’s interest rate is capped at 5.9%, and
MinFin will pay a 0.8% commission. The loan will be denominated in euros for a
total amount of no more than the equivalent of USD 630 mln. The loan will be
divided into two tranches: a four-year tranche with semi-annual amortization
and a ten-year tranche with semi-annual amortization after a 4.5-year grace
period.
Recall, the World Bank board approved a USD 750 mln loan guarantee
for Ukraine on Dec. 18. In late December, Ukraine’s MinFin used half of that
guarantee to attract a EUR 349 loan from
Deutsche Bank, with the rate being capped at 4.9%. The second half of the
guarantee was planned to be used in early 2019.
Alexander Paraschiy: If the loan is attracted in the full amount, Ukraine would receive a
total of USD 1,030 mln under the World Bank’s USD 750 mln guarantee. The raised
money will enable the government to smoothly pay its nearest international
debts, including USD 555 mln in coupons on sovereign Eurobonds scheduled for
March 2019.
