EU, U.S. approve financial support for Ukraine

The U.S. and Ukrainian governments signed a loan guarantee agreement for USD 1 bln, as announced on April 14 by Prime Minister Arseniy Yatsenyuk and U.S. Treasury Secretary Jacob Lew. When completed, the guarantee will complement the Ukrainian government’s IMF reform program and underscore the U.S. commitment to Ukraine, Lew said.

The same day, the EU Foreign Affairs Council approved a mid-term loan of EUR 1 bln and an additional EUR 610 mln in macro-financial aid for Ukraine, announced EU Enlargement Commissioner Stefan Fule. The loan is intended to contribute to covering Ukraine’s urgent balance of payments needs, as identified in the government’s economic program that has been supported by the IMF.

Alexander Paraschiy: These two loans are part of USD 27 bln in aid that has been committed to Ukraine based on the upcoming IMF loan agreement, which is expected to be signed at the end of April or early May. They are promising in light of significant progress made by the Ukrainian government in undertaking painful reforms, which include the revised 2014 state budget, approved anti-crisis legislation (austerity measures and increased taxes) and new procurement law (which targets the embezzlement of state funds).