On November 28, Minister of Finance of Ukraine Sergii Marchenko and Minister of Economy, Finance and Industrial and Digital Sovereignty of France Bruno Le Maire signed an Agreement on providing Ukraine with EUR 100 million loan from the French Development Agency.
The funds will be sent to the general fund of the State Budget to finance all priority expenditures, except for defense expenditures.
“We are grateful to the Government of the French Republic for supporting Ukraine and providing an additional EUR 100 million. These funds will allow us to continue to maintain the efficiency of state administration, and to ensure priority expenditures of the State Budget during the fight against the aggressor,” said Sergii Marchenko.
The loan is provided on concessional terms: the interest rate is 1.04% per annum, and the final repayment of the loan is carried out 15 years from the date of the loan agreement (taking into account the grace period for deferring loan repayment for a period of more than 5 years from the date of the loan agreement).
During the meeting, the parties also discussed the current financial situation in Ukraine, the need for additional financing and the priority areas of cooperation between the Governments of both countries.
At the same time, the Minister of Finance of Ukraine emphasized the need to attract external financing from international partners next year to cover the state budget deficit, which will amount to more than USD 3 billion per month.
The meeting was also attended by Deputy Minister of Finance of Ukraine Olga Zykova, Deputy Director of Bruno Le Maire’s Cabinet Morgane Weill, Advisor for European and International Affairs of France Audrey Gross, Head of Directorate of Bilateral Economic Relations and Attractiveness Denis Le Fers, Deputy Chief Executive Officer of the French Development Agency Marie-Helene Loison and Second Secretary for Economic Affairs from the Embassy of Ukraine in the French Republic Ksenia Druzhchenko.