World Bank provides $500 mln to Ukraine under financial sector development program

Finance Minister of Ukraine Natalie Jaresko and World Bank Director for Ukraine, Belarus and Moldova Qimiao Fan signed the credit agreement on Wednesday. "The loan was endorsed by the Directors’ Board of the World Bank on September 15, 2015. This loan is one more step towards enhancing the financial stability of our country to recover its economy," the report said. The Finance Ministry said on its website that the interest rate for the loan is only approximately 1% p.a. which makes it possible to replace the current liabilities which are served at an interest rate of approximately 8%. The maturity period for the loan is 17 years, and the first six years are a grace period. "Within several days the loan will be transferred to the state budget as a single payment," the report said. This loan is an element of the broader program of cooperation between Ukraine and its international partners totaling $7.2 billion. The loan became possible thanks to continued cooperation between Ukraine and the International Monetary Fund under the Extended Financing Facility (EFF) agreed in March 2015.