Ukraine and US sign $1 billion Loan Guarantee Agreement

Ukraine and US sign $1 billion Loan Guarantee Agreement
18.05.2015 | 17:52 |	printer friendly

Today, the governments of Ukraine and the United States signed a $1 billion Loan Guarantee Agreement (LGA). Ukraine’s Minister of Finance Natalie Jaresko signed the Agreement on behalf of the Government of Ukraine, while the US Government was represented by US Ambassador to Ukraine Geoffrey R. Pyatt. and Director of the USAID Mission Jed Barton. The LGA is intended to support economic reforms focused on revitalizing economic activity and broaden economic opportunities for Ukrainian citizens.  The loan guarantees will be issued as part of a broad package of financial support to Ukraine from its bilateral and multilateral partnersproviding $7.5 billion in support for Ukraine over the coming year. “On behalf of my Government and the people of Ukraine, I want to offer our sincere thanks to the United States for their continued and unwavering support. This loan guarantee is a cornerstone of that support and comes at a critical time for our country,” said Finance Minister of Ukraine Natalie Jaresko.  This transaction builds on a similar $1 billion loan guarantee issued in May 2014. Thanks to loan guarantees, market participants will assess the risk of Ukrainian Eurobonds at the level of US sovereign risk.