On Friday, 4 December, Prime Minister of Ukraine Arseniy Yatsenyuk and
Ambassador of Japan in Ukraine Shigeki Sumi inked the
Agreement between the Government of Ukraine and the Government of Japan on Economic Reform Development Policy Loan.
ceremony was attended by Minister of Finance of Ukraine Natalie Jaresko and Vice-President of the Japan International
Cooperation Agency (JICA) Kenichi Tomioshi.
Under the Loan
Agreement, the Government of Japan provides financial assistance to Ukraine
worth ¥ 36.969 billion yen (approximately US$ 300
million), as co-financing tied to the World Bank’s 'Development Policy Loan (DPL-II)';
expressed gratitude to the Government of Japan for granting to Ukraine the
financial support. He noted that this loan is provided for a term of 20 years
with a six-year-grace period and under 1% interest
rate per annum.
Minister of Ukraine emphasized the funds were provided as Ukraine fully
complies with the programme of cooperation with the
International Monetary Fund, the World Bank and other international donors:
"A condition of further support in the first place is the stay of Ukraine
in the program with the International Monetary Fund, which absolutely coincides
with the programme for the Government and a coalition
period of 21 months, we have demonstrated political will for real reforms,
which were highly assessed by our international partners and G7, in which Japan
will be the chair next year", he stressed.
"It is hard
to gain trust, but easy to lose. I therefore call on all political forces part
of the coalition to pursue the right path of reforms that meet both our
internal commitments to the people of Ukraine and our external obligations to
foreign creditors," accentuated Arseniy Yatsenyuk.
For this purpose,
according to the Head of the Government, the adoption of a new budget and new
tax system "should be simultaneous processes". He reminded that the
Government had developed a draft Tax Code and a draft law of Ukraine on the
forward to the active participation of members of the Parliament in the work on
these bills. In the last five days we have been working with MPs, and within
these five days there were not more than five MPs who took an active part in
discussions on the budget and tax reforms," he stressed.
Government is ready to hold substantive discussions with members of Parliament
“to urgently adopt two basic draft laws on budget and the tax reform."
He reminded about
one of the largest projects of bilateral cooperation with the Government of
Japan - for the ‘Bortnychi Sewage Treatment Plant
Modernization Project’ worth
US$ 1 billion.
Minister stressed that Ukraine highly appreciates the support of the Government
of Japan in providing technical advice to stabilize Ukrainian financial and