Yatseniuk A.: In case the Governmental package of draft laws approved the support of economy will amount USD 13.6 billion

In case the Parliament approves the legislative initiatives directed to preventing of financial catastrophe and creating prerequisites for the economic growth in Ukraine, the amount of financial support provided for Ukraine’s economy will make up USD 13.6 billion, at this through 2014-2015 the Cabinet of Ministers will be capable to realize “a very ambitious investment program”.

The Prime Minister Arsenii Yatseniuk announced on Thursday, March 27, at the Verkhovna Rada.

According to him, the general volume of support for Ukrainian economy will make up USD 13.6 billion. In particular, it comprises the World Bank budget loan worth USD 1 billion; funds to be transferred by the European Union for the so-called macro-financial assistance worth USD 2 billion; macro-financial assistance from the US Congress worth USD 1 billion. Moreover, Arsenii Yatseniuk informed the Government of Japan suggested USD 100 million, the Government of Poland – USD 100 million, additional USD 200 million would be rendered by the World Bank for the so-called project activity; the EBRD would provide USD 200 million, the European Investment Bank – USD 170 million; the International Financial Corporation – USD 400 million.

“Besides, we have agreed with our credit providers to leave a tool of economic support such as governmental guarantees for the investment projects. It is UAH 25 billion which we will receive for our agro-industrial and industrial sector,” Arsenii Yatseniuk stressed.

The Head of Government enumerated basic projects which the Cabinet of Ministers was planning to realize in 2014 – 2015. In particular, they include modernization of the gas pipeline, which is a joint project of the EBRD and the European Investment Bank: “We will draw Eur 308 million for this project”.

Moreover, through 2014 – 2015 it is planned to attract the EBRD and the European Investment Bank capital worth Eur 300 million for the construction of an underground network in Kharkiv; Eur 152 – to complete the construction of the underground network in Dnepropetrovsk; Eur 70 million from the EBRD alone – to upgrade the electric energy wholesale market.

Arsenii Yatseniuk informed the EBRD was also ready to provide funds for the projects of enlargement of Kakhovka hydroelectric power plant, construction of Lutsk-Ternopil power transmission line and development of power network in the south of Ukraine “where we have biggest problems and where we suffer up to 40% losses in power networks of Ukraine”.

Apart from that, it is intended to transfer Eur 400 million for realization of a municipal program of Ukraine: “It is what mayors of towns, townships for support of local self-government and realization of projects in townships”.  

The European Investment Bank intends to allocate Eur 200 million for the environmental program.

Moreover, the Head of Government informed the Cabinet of Ministers was working in synergy with the National Bank on the program that envisages the widest refinancing of commercial banks with the interest rate 14%.

He stressed that the National Bank is an independent body, the Government has no right and will never dictate policy of the Central Bank. “But, to our conviction, the rates to attract funds worth 25% and credit rates amounting 35% are unacceptable. We urge the National Bank to launch the widest program of refinancing of the commercial banks with 14% interest. It will afford to direct the resource into the economy at a rate not higher 17-18% with the inflation 12-14%. The payment for the resource will make up only 4-5% as is in the EU member countries. The prices have grown by 14%, the rate in crediting – 18%, the actual charge – 4%”.