On October 11, the Minister of Finance of Ukraine, Serhiy Marchenko, signed the Fourth Additional Agreement with the Government of Canada regarding an additional loan in the amount of 400 million Canadian dollars (almost 300 million US dollars). Funds will be raised through the IMF's Administrative Account.
Points of attention
- Ukraine has signed an agreement with Canada for an additional loan of nearly $300 million, which will be raised through the IMF's Administrative Account.
- The loan from Canada comes with favorable terms including a 10-year repayment period, 1.5% interest rate per annum, and a grace period of 4.5 years.
- Canada has been a significant supporter of Ukraine, providing over 5 billion US dollars in direct budget support since February 2022, contributing to the stability of Ukraine's financial system.
- In addition to the loan agreement, Ukraine and Canada have also updated their free trade agreement, which will strengthen economic cooperation and benefit both countries.
- The historic free trade agreement between Ukraine and Canada covers various aspects such as market access conditions, investment, services, and inclusive trade, aimed at enhancing bilateral economic partnership.
Ukraine will receive a soft loan from Canada
Funding within the framework of the concluded Agreement will be aimed at ensuring priority expenditures of the State Budget of Ukraine.
Canada has been one of the leaders in supporting Ukraine and a strategic partner that has provided significant assistance since the early days of the full-scale invasion. Direct budget support from February 2022 reaches more than 5 billion US dollars. I am grateful to the Government and citizens of Canada for their solidarity with Ukraine and extremely important contribution to the stability of the financial system of Ukraine.
Serhii Marchenko
Minister of Finance of Ukraine
The additional loan is granted for a period of 10 years, the interest rate is 1.5% per annum. The grace period is 4.5 years from the date of receipt of funds.
The historic free trade agreement between Ukraine and Canada will be effective from July 1
On June 26, the First Deputy Prime Minister and Minister of Economy of Ukraine Yuliya Svyridenko and Canada's Minister for Export Promotion, International Trade and Economic Development Mary Ng made a joint statement regarding this historic event.
The updated CUFTA will benefit workers, businesses and consumers in both countries, strengthening trade and economic cooperation between Canada and Ukraine. The Agreement retains the market access conditions for goods from the 2017 Agreement and has been updated to include chapters on investment, services and inclusive trade.
In the long term, the updated CUFTA will strengthen our overall bilateral economic partnership, the joint statement said.
