Ukraine will be able to receive up to $8 billion in loans from Korea

Ukraine will be able to receive up to  billion in loans from Korea

Ukraine and Korea have agreed on cooperation, within the framework of which it is envisaged to receive up to 8 billion dollars in credit funds for, in particular, reconstruction projects.

She reported about it press service Ministry of Economy.

On Wednesday, the two governments signed a preliminary agreement on loans from the Economic Development and Cooperation Fund (EDCF), a division of the Export-Import Bank of Korea. According to Yulia Svyridenko, First Deputy Prime Minister and Minister of Economy, Ukraine is included in the list of priority countries for bilateral cooperation with Korea within the framework of the Official Development Assistance program.

She noted that the first tranche from the Korean side may amount to $300 million and will become available within 3-4 months from the signing of the second stage of the agreement, which is expected in a month.

“The next tranche of up to $3 billion will become available in 2024 with a gradual increase of the limit to $8 billion as the pipeline of projects fills up. Ukraine will also be able to use Korean capacities and experience for the post-war reconstruction of destroyed infrastructure, industrial and civilian facilities,” she added Svyridenko

The funds will be attracted for a period of up to 40 years at a preferential interest rate of 0.15% per annum with a 10-year delay in repayment of the loan body.

The Ministry of Economy hopes that in the coming weeks the parties will complete work on formalities, after which the governments will be able to present the first projects financed by the Korean Economic Development Fund to the business communities of Ukraine and Korea.

Separate loan agreements will be concluded for individual projects, while Korea may provide grants and technical assistance for project preparation and evaluation. In addition, the opening of an EDCF office in Ukraine is planned, the Ministry of Economy said.

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