The Ukrainian parliament has ratified the financial agreement (the draft Ukraine municipal infrastructure programme) between Ukraine and the European Investment Bank (EIB).

Bill No. 0075 on the ratification of the agreement was supported by 261 MPs on Wednesday.

The bill ratifies the financial agreement signed on July 23, 2015 in Kyiv.

The agreement envisages the provision of EUR 400 million by the EIB.

Ukraine in the person of the Finance Ministry of Ukraine acts as the borrower of the bank's funds, and Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine will execute the project.

Central and local executive power agencies, local self-government agencies and public municipal enterprises, including enterprises where the state or community holds over 50%, could be ultimate beneficiaries of the money.

The rate, fixed of floating, is defined by the borrower on the date when the funds are received. The total period for returning the funds is from 15 to 390 years, including the grace period from three to eight years.

The fee for provision of loans to ultimate beneficiaries is 0.01% per annum of the amount drawn down and outstanding.

According to the explanatory note to the bill, the ratification of the agreement would allow raising funds for the Ukrainian regions to modernize the utilities and housing sector.