Ukraine in Arabic | World Bank will provide to Ukraine funancial support
KYIV/Ukraine in Arabic/ Ukraine received the funds of the First Loan for development policy in the financial sector to the amount of USD 500 million within the frames of the agreement with the International Bank for Reconstruction and Development, signed August 8, 2014.
The Finance Ministry informs on Monday.
According to a statement published on the ministry's website, the 16-year loan carries a seven-year grace period and a floating interest rate, which currently stands at 0.63 percent.
The statement also noted that Ukraine is obliged to repay 0.25 percent of the loan as a one-time commission.
The loan would be used to improve Ukraine's banking system and implement a comprehensive crisis management program in the country's financial sector, it added.
Under the program's framework, the Ukrainian government will provide additional financing to guarantee the reliability of individual deposits, improve the solvency of the banking system and strengthen the legal framework for the long-term sustainability and efficiency of Ukraine's financial sector.
Ukraine, trapped in political and social turmoil, is teetering on the brink of an economic free fall, with its gross domestic product shrinking by three percent year on year in the first half of 2014.
The country's financial sector is also facing a number of serious challenges that require sustained reforms aimed at boosting Ukraine's strongly affected economic activities.