Today, on November 11, at its session, the Government has adopted a decision to sign an additional agreement to the Loan Agreement for EUR 150 million concluded on April 07, 2022, between the Cabinet of Ministers of Ukraine and the KfW within the framework of the MSME-Financing Covid-19 project.

The decision to sign the Additional Agreement to the Loan Agreement dated April 07, 2022, was made by the Government in connection with the proposal of the KfW to amend the existing agreements within the framework of the implementation of the Memorandum of Understanding on the settlement of the issue of payments on servicing the public debt of Ukraine in order to mitigate the economic consequences of the aggressive war waged by the russian federation against Ukraine, concluded by the Government of Ukraine and the creditor countries on September 14, 2022.

Under the Additional Agreement, the loan servicing is proposed to be suspended until the end of 2022 and in 2023. The loan servicing of EUR 150 million will be postponed to 2027-2031 and will be paid in 10 equal installments. This will allow to reduce the debt burden on the state budget in the part of expenditures on servicing the public debt under the KfW loan.

Background

Under the Loan Agreement dated April 07, 2022, a loan of EUR 150 million was attracted to the state budget as a reimbursement of the expenses of the Government of Ukraine to support small and medium-sized businesses.