Ukraine`s Finance Minister Oleksandr Danyliuk has announced that $1 billion raised from the placement of eurobonds against U.S. guarantees has been transferred to Ukraine`s accounts.
”One billion dollars from the issue of eurobonds against U.S. guarantees has arrived in Ukraine`s account,” he wrote on Facebook on Thursday, September 29.
Ukraine on September 22 placed eurobonds worth $1 billion against U.S. government guarantees at the lowest rate in Ukraine`s history, set at 1.471% per annum.
Getting the loan guarantees from the U.S. government became possible after a positive decision by Ukraine`s key lender, the International Monetary Fund, on further cooperation and the allocation of the third tranche under the four-year Extended Fund Facility program in the amount of $1 billion.
As UNIAN reported earlier, the government of Ukraine on June 3 signed an agreement with the U.S. government on the provision of loan guarantees worth $1 billion in the framework of agreements reached by leaders of both countries.
The funds to the tune of $1 billion to be raised through the issue of bonds against U.S. loan guarantees will be channeled into the state budget`s general fund and spent on social security.
This is the third loan warranty received by Ukraine from the United States. The previous two warranties granted in 2014 and 2015 enabled Ukraine to obtain $2 billion in total on the international capital market at a record low-interest rate.