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Ukraine and USA ink Agreement on granting loan guarantees to Ukraine worth US$1 milliard
18.05.2015 19:47 "Agro Perspectiva" (Kyiv) —
As of May 18, a ceremony of signing of the Agreement on granting of credit guarantees worth US$1 milliard between the Governments of Ukraine and the USA took place, Government Portal reports.
As to the report, from the Ukrainian Government the Agreement was signed by the Ukrainian Minister of Finance Nataliya Jaresko, from the US Government - by the US Ambassador Geoffrey R. Pyatt and USAID mission Director Jed Barton. This document is intended to support economic reforms, designed to restore economic activity and expand economic opportunities for the citizens of Ukraine.
Reportedly, loan guarantees in a total amount of US$7.5 milliard will be provided over the next year as part of a wider package of financial support for Ukraine by its bilateral and multilateral partners.
«On behalf of the Government and people of Ukraine, I would like to express sincere gratitude to the USA for their constant and unwavering support. This Agreement on granting credit guarantees is the cornerstone of this support much needed for our country at this critical moment,» Jaresko stressed.
As to the report, the mechanism of credit guarantees’ granting is identical to that one upon which the credit guarantees worth US$1 milliard had been provided to Ukraine within last year May.
Reportedly, due to the Agreement the market participants will estimate the risk of Ukrainian Eurobonds at the level of the US sovereign risk.
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