Minister of Finance Sergii Marchenko signed an agreement on the launch of the Ukraine Loan Cooperation Mechanism (ULCM), which will create a legal framework for servicing and repayment of funds received by Ukraine, up to EUR 45 billion.

The mechanism will allow the use of proceeds from frozen sovereign assets of the russian federation to cover the principal amount of the loan raised from partners under the G7 ERA initiative, as well as interest and any other costs associated with the loan.

Funds available through the ULCM can only be used to repay eligible loans provided to Ukraine by creditors under the G7 Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative.

Additional information

Recently Minister of Finance of Ukraine Sergii Marchenko signed a Memorandum of Understanding and a Loan Agreement between Ukraine and the European Union to attract up to EUR 35 billion of Macro-Financial Assistance. Funds will be provided under the new ULCM mechanism.