Ministry of Finance: Parliament ratifies framework agreement on project financing between Ukraine and Finland

Today, the Verkhovna Rada of Ukraine has adopted the Law of Ukraine “On Ratification of the Framework Agreement between the Government of Ukraine and the Government of the Republic of Finland on Projects Financed under the Finland-Ukraine Investment Facility (FUIF)”.

The ratification of the Framework Agreement will allow attracting funds from the Finnish side under the Finland-Ukraine Investment Facility.

The FUIF envisages the provision of concessional loans to finance projects aimed at the socio-economic development of Ukraine.

The preferential terms of the loans provide for a grant component of at least 35% of the FUIF. The grants will be used to service the loans (full coverage of interest payments by the Finnish side), as well as to repay part of the principal amount of the loan (the amount will be determined for each project separately within the grant component).

The loans will be secured by a 100% guarantee of the Finnish Export Credit Agency Finnvera Plc.