Kiev discloses conditions of USD20 billion US loan
Date
12/18/2024 7:26:42 AM
(MENAFN) Ukraine has finalized the terms of a $20 billion loan from the US federal Financing bank (FFB), which will be repaid using profits from frozen Russian state assets. This loan is part of a broader $50 billion loan agreement from the G7, which includes $20 billion from the EU and $10 billion shared between the US, Britain, Japan, and Canada. The funds will be transferred to the Facilitation of Resources to Invest in Strengthening Ukraine financial Intermediary Fund, created by the World Bank in October.
The loan terms include an interest rate of 1.3% plus the current rate of one-year US Treasury bills. Ukraine’s Finance Ministry will issue a certificate of indebtedness to the FFB, with the loan guaranteed by the US Agency for International Development (USAID). The repayment will rely on the profits from the frozen $300 billion in Russian assets, which were blocked following Russia's 2022 invasion of Ukraine.
Moscow has condemned the asset freeze, labeling it "theft" and warning of retaliation. This financial move is part of a larger strategy by the Biden administration to support Ukraine, which also includes new military aid and sanctions against Russia. The loan deal comes amid growing uncertainty over future US support for Ukraine, especially with the incoming leadership of Donald Trump.
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