The state budget of Ukraine received a $400M loan under Great Britain’s guarantee through the World Bank Trust Fund. The funds are part of the fifth financing round of the PEACE in Ukraine project. The money will be used for pension payments and salaries for medical workers. The loan is provided on preferential terms: the repayment period is 19 years with a 5-year grace period. The total financial aid from the UK since February 2022 now reaches $2B.
In addition, Naftogaz of Ukraine and the EBRD signed a loan agreement to acquire €200M to strengthen Ukraine’s energy security. The funds will help Naftogaz to create strategic gas reserves during the heating season.
Last year, Naftogaz received a €300M loan for these purposes as part of a €500M donor support package, including a grant from Norway. The credit agreement will enter into force after the issuing of the state guarantee.