USA offers Ukraine $1 bln loan guarantee
The U.S. government is offering Ukraine a sovereign loan guarantee of up to $1 billion to support its economic reform agenda and continued engagement with the International Monetary Fund (IMF), U.S. Secretary of State Antony Blinken said in a statement on the department's website.
"This offer – combined with the strong partnership between Ukraine, the IMF, other international financial institutions, the G7 and other bilateral donors – will bolster Ukraine's ability to ensure economic stability, growth, and prosperity for its people in the face of Russia's destabilizing behavior," Blinken said.
"Between 2014 and 2016, the United States issued three separate $1 billion sovereign loan guarantees to Ukraine. These loan guarantees played a critical role in helping Ukraine successfully stabilize its economy amid previous Russian aggression and implement a bold economic reform agenda underpinned by ambitious cooperation with the IMF," the U.S. Secretary of State said.
He said the United States has provided over $2 billion in development assistance to Ukraine since 2014. The U.S. government has also worked to promote commercial participation by U.S. companies across the Ukrainian economy.
The Export-Import Bank of the United States intends to make available up to $3 billion to facilitate procurement of U.S. goods and services for projects in Ukraine, while the U.S. International Development Finance Corporation has a current investment portfolio in Ukraine of approximately $800 million across more than a dozen projects, Blinken said.
"We are exploring additional ways to support Ukraine and its people, and we will continue to work with Congress to advance these efforts," the U.S. Secretary of State said.
As reported, on September 29, 2021, Ukraine timely and in full redeemed the third and last issue of five-year eurobonds under U.S. guarantees in the amount of $1 billion. These securities were issued at the end of September 2016 at 1.471% per annum.
Earlier, Ukraine had already redeemed two similar issues of five-year eurobonds under U.S. guarantees in the amount of $1 billion: placed in May 2014 at 1.844% per annum and in May 2015 at 1.847% per annum.
