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Arseniy Yatsenyuk: U.S. Government decided to grant $ 2 billion credit guarantees to Ukraine
13.01.2015 | 20:05
Information and Communication Department of the Secretariat of the CMU

The Government of the United States of America has decided to grant Ukraine a USD 2 billion of loan assistance, according to the model of May 2014. Prime Minister of Ukraine Arseniy Yatsenyuk announced at a press conference on Tuesday, January 13.

"The U.S. Government noted complete progress of the Ukrainian authorities in a number of areas, including the measures to curb corruption and a thorough reform in the energy sector it primarily concerns the Naftogaz, and the restoration of the financial system, improving the business environment, in particular due to recent laws which have been passed by the Ukrainian Parliament, and the return of financial stability," said Arseniy Yatsenyuk.

In the first half of 2015 there is planned to allocate USD 1 billion and the rest in the second half-year.

The Head of Government stressed that the funds would be granted on condition of having the IMF program, "As a rule, a financial support model for Ukraine is based on the principle that when the IMF gives certain part, other contributors also give certain part."

The funds being received by Ukraine in the framework of macro-financial assistance, according to the Prime Minister, "arent spent on salaries of military personnel, funding the army, reimbursement of pensions", "We have to cope with this ourselves. It is the task for the country - to make the budget well balanced in order to finance the incredible military spending that we have today. As someone thinks that it is very easy - we have taken loans and spent them on pensions, salaries, new military equipment. None gives loans under these things.

The principal goal of the macro-financial assistance is, according to Arseniy Yatseniuk, "to restore financial stability in Ukraine and confidence of markets to Ukraine, to increase foreign exchange reserves of the National Bank to stabilize the exchange rate", "The main purpose is to make those deposits that people took and hid the certain part of these to the deposit boxes, come from the bank safety boxes back, circulate in the banking sector, and we could step by step get out of this situation."

Moreover, Arseniy Yatseniuk informed that the total amount of payments of Ukraine on loans in the current year made up USD 11 billion, "And this implies only direct payments, the funds we havent taken".

He reminded that the previous year Ukraine had received USD 9 billion of IMF assistance, and paid the debt of USD 14 billion.

Concerning an overall debt of Ukraine, Arseniy Yatsenyuk reminded that when the previous year he had become the Prime Minister, Ukraine had had USD 73 billion of debt: As of today we have similar amount of debt in dollars. Objectively, that calculated in hryvnya it has changed, as due to the 20% loss of the country's economy the rate has changed. But the total amount of foreign debt that was denominated in U.S. dollars for the year during the incumbent Government has not changed."

Regarding the cooperation program with the International Monetary Fund, the Head of Government reminded that an IMF mission was staying in Kyiv these days, "We are working on a daily basis. There is a number of important issues that need to be considered again. But I stress the progress in our bilateral negotiations".

 

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