Ukraine to receive $311 million loan from Japan
Ukraine and Japan have ratified a second loan agreement worth $331 million, reported the Ukrainian Ministry of Finance.
A statement issued by the Finance Ministry stated that "Ukraine has received a long-term soft loan worth $331 million from Japan within the DPL II joint project with the World Bank. The credit is granted through the Japan International Cooperation Agency.”
The Finance Ministry also noted that the term of the loan is 20 years with a six-month grace period. The interest rate is set at 0.05%, which is currently less than 1% per annum.
"The condition for providing the funds is Ukraine carrying out ten structural reforms, including those providing for the elimination of tax pits by introducing of an electronic system of VAT administration, gas market reforms and the introduction of effective control mechanisms not only for budget expenditures, but also for income generation, for which the powers of the Accounting Chamber of Ukraine were expanded," the Ministry of Finance explained.