The Cabinet of Ministers of Ukraine signed an additional agreement to the April 7, 2022 €150M loan agreement between the CMU and the Reconstruction Credit Institute (KfW). As explained by the Ministry of Finance, the KfW proposed changing the current agreement as part of the implementation of the Memorandum of Understanding regarding the settlement of the issue of payment for Ukraine’s state debt service to mitigate the war’s economic consequences that was signed by Ukraine and creditor countries on September 14, 2022. The additional agreement provides that loan servicing is suspended through the end of 2022 and into 2023. Payment of loan servicing amounts for €150M will be postponed to 2027-2031. According to the April 7 agreement, Ukraine entered into a €150M loan for the state budget as reimbursement for the government’s expenses in support of small and medium-sized businesses.
The KfW has postponed servicing a €150M loan by Ukraine until 2027.
The KfW servicing loan by Ukraine