Poroshenko signs law to ratify memo with Germany on EUR 500 mln loan to rebuild Donbas infrastructure

15:09, 05.08.2015 1 min read

Ukrainian President Petro Poroshenko has signed a law on the ratification of a memorandum of intent by the governments of Ukraine and Germany on an untied commercial loan worth EUR 500 million for infrastructure projects.

The loan agreement was signed in Berlin on April 1, 2015, the presidential press service has reported.

KfW Development Bank signed it on behalf of the German federal government, which has provided a guarantee for the loan funds.

The money will be spent on infrastructure projects and aid for internally displaced persons from Donetsk and Luhansk regions.

The loan is primarily earmarked for modernization in the transport sector, energy sector, heating supply, energy efficiency, water supply and waste water disposal, social infrastructure and housing construction/reconstruction.

The Ukrainian parliament passed the law on July 15, 2015.