The USA signs $1 billion sovereign loan guarantee with Ukraine
USAID Press Office reports that the governments of Ukraine and the United States signed a $1 billion Loan Guarantee Agreement (LGA) on Monday, May 18, 2015.
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“The United States today reaffirmed its strong commitment to the people of Ukraine by signing a $1 billion sovereign loan guarantee agreement with the Government of Ukraine. The guarantee will help the Government of Ukraine continue to institute reforms that tackle corruption, improve the business climate, put the economy on a sustainable path to growth, and make government more responsive to the people.” states the report.
USAID Acting Administrator Alfonso Lenhardt says that this loan guarantee will help Ukraine in providing reforms:
“The $1 billion loan guarantee will help the Government of Ukraine to carry out its ambitious economic reform agenda. The guarantee sends a strong signal of U.S. support for Ukraine in achieving its reform goals and fulfilling the Ukrainian people’s aspirations for a prosperous and democratic future,” states Alfonso Lenhardt
“The U.S. loan guarantee is part of a comprehensive international financial package, involving both official and private sectors, designed to support Ukraine as it puts in place a reform program. When issued, the U.S. loan guarantee will provide the Government of Ukraine with access to affordable financing from international capital markets, enabling the Government of Ukraine to provide critical services and protect the most vulnerable Ukrainians from the impact of necessary economic adjustments as it implements key reforms,” writes USAID Press Office.
Ukraine Minister of Finance Natalie Jaresko, U.S. Ambassador to Ukraine Geoffrey Pyatt, and U.S. Agency for International Development (USAID) Ukraine Mission Director E. Jed Barton participated in the signing ceremony in Kyiv, Ukraine.
“The United States provided Ukraine with a $ 1 billion loan guarantee in May 2014. If Ukraine continues making concrete progress on its economic reform agenda and conditions warrant, the Administration has indicated it would be willing, working with Congress, to consider providing up to an additional $1 billion loan guarantee in late 2015, for a total potential contribution of up to $2 billion in guarantees in 2015,” USAID Press Office.
Finance Minister of Ukraine Natalie Jaresko underlines that loan guarantee is a cornerstone of the support from the USA at a critical time for Ukraine:
“On behalf of my Government and the people of Ukraine, I want to offer our sincere thanks to the United States for their continued and unwavering support. This loan guarantee is a cornerstone of that support and comes at a critical time for our country,” said Finance Minister of Ukraine Natalie Jaresko.