U.S. Signs $1 bn Loan Guarantee for Ukraine
The United States on Monday signed a $1 billion loan guarantee for Ukraine in support of its economic recovery after weeks of political upheaval and the loss of Crimea to Russia.
It came as pro-Russian insurgents gained more ground in eastern Ukraine, occupying a police station and an administrative building, their latest seizures in a campaign that threatens to break up the ex-Soviet state.
"The Ukrainian people have demonstrated tremendous courage as they have charted an independent course for their country and demanded a government that truly reflects the will of the people," U.S. Treasury Secretary Jacob Lew said in a statement.
"The United States has been at the forefront of building international support for Ukraine, and holding Russia accountable for its violation of Ukrainian sovereignty and destabilizing action."
Lew signed the agreement with Ukrainian Finance Minister Oleksandr Shlapak at the Treasury's Washington headquarters following talks.
The deal is "a sign of unconditional support from the U.S. for the aspirations of the Ukraine people to freedom, democracy and European values," Shlapak said at the signing ceremony.
The U.S. loan guarantee, available immediately, will reinforce the Ukrainian government's efforts to provide critical services as it implements reforms, while protecting the most vulnerable households from the impact of the necessary economic adjustment, Lew said.
The U.S. Treasury chief praised the work of Shlapak and his team in setting up a comprehensive economic reform program together with the International Monetary Fund.
"The United States very much wants to see Ukraine prosper, and we will continue to stand with the Ukrainian people as they move forward to realize their long-held aspirations," he said.
The IMF is discussing financial assistance of $14-$18 billion for Ukraine, part of a $27 billion rescue being mounted by the World Bank and Western powers.
The IMF, whose largest stakeholder is the United States, is expected to formally decide on the package late this month or early May.
Shlapak said that Ukraine had "practically finished the talks with the IMF" and was expecting an IMF executive board decision "in the near future."
"We have practically agreed on a broad program of cooperation with the IMF," he added.
IMF managing director Christine Lagarde said that she had met Sunday with the Ukrainian finance chiefs attending the IMF's annual spring meetings in Washington.
"We discussed recent economic developments in Ukraine and the good progress made by the authorities in implementing the policy actions," Lagarde said.
Also Monday, the European Union approved a one-billion-euro ($1.4 billion) package for Ukraine to help overcome the country's deep financial problems.
The EU foreign ministers also approved a plan to reduce customs duties on Ukrainian goods that could save the country almost 500 million euros a year.
Source: Agence France Presse
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