Ukraine will receive hundreds of millions in loans from Canada and the Bank of Korea.

Ukraine plans to obtain a loan from the Export-Import Bank of Korea for up to $100M and has finalized the primary conditions for the state’s external borrowing. These funds will be directed to the Emergency Response Program in health care, within the framework of the Heal Ukraine program.

The yearly interest rate on the loan is 1% and must be fully repaid within 20 years of signing the loan agreement. In addition, the loan has a five-year grace period for repayment from the moment of signing the contract. This means that for the first five years, Ukraine will pay only interest without being required to repay the loan’s principal amount.

In addition, Ukraine plans to obtain a loan from Canada for up to CAD 400M with a fixed annual rate is 1.5%. This loan adheres to conditions approved for previous agreements between Ukraine and Canada. The final repayment of the loan must be made ten years after receiving the funds, with a grace period of 54 months.