Ukraine to issue $1 billion under US state guarantees

UKRAINE - In Brief 15 Apr 2014 by Dmytro Boyarchuk

Yesterday the U.S. and Ukrainian governments signed a loan guarantee agreement for $ 1 billion. Today Ukrainian Minfin announced its intention to issue $1 billion Eurobonds. In fact, it is a very positive signal for the country given all tough conditions Ukraine is facing for the moment. Still we do not see this placement possible prior to the IMF agreement. More good news came from EU yesterday. The EU Foreign Affairs Council approved a mid-term loan of EUR 1 billion and an additional EUR 610 billion in macro-financial aid for Ukraine. The loan is intended to contribute to covering Ukraine's urgent balance of payments needs, as identified in the government's economic program that has been supported by the IMF. These funds also are seen to come after the IMF agreement signed. Probably, these two events could be seen as harbinger of upcoming loan from the Fund.

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