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

15 February 2022

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.