Ukraine plans to attract loans of 200 million euros from Italy, 150 million euros from Germany

Economy and Finance Minister Daniele Franco has confirmed the Italian government’s intention to grant Ukraine a loan of 200 million euros, Ukrainian Finance Minister Serhiy Marchenko said in an interview with Corriere della will be Italian following recent talks in Washington during the spring meetings. the International Monetary Fund (IMF) and the World Bank.

“We are negotiating to receive funds on concessional terms: at 1% per annum, with a maturity of 15 years. In my opinion, other countries can also offer us loans on such concessional terms. Such funding would help us definitely,” Marchenko said. .

He also thanked Italy, which was the first of all countries to provide Ukraine with 110 million euros in grants at the very beginning of the war started by Russia.

Ukraine’s finance minister said preparations for an agreement on Germany’s next 150 million euro loan, which will help support Ukraine’s macro-financial stability, also started recently.

According to him, only last week Germany granted a loan of 150 million euros to support small and medium-sized enterprises, an agreement on which was reached in March 2020.

“Minister Christian Lindner also noted that they were planning to provide us with military support in the amount of 1 billion euros, but we did not expect Germany to provide financial support less than that provided to us by the UK, Canada or the US,” Marchenko said. .

According to him, kyiv has high hopes for the financing of the account managed by the IMF. “We encourage partner countries to consider reallocating 10% of their Special Drawing Rights (SDRs) that they received from the IMF in August 2021 and have not yet used. We mainly target countries in the EU. However, specific rules would have to be agreed with the European Union and the European Central Bank (ECB),” explained the Minister of Finance.

According to him, EU countries will consider this issue, as there might be some restrictions on the use of SDRs by the ECB.

“But I think the countries will try to find a legal solution with the ECB to make the SDRs available to Ukraine. The IMF is also working with other countries to find out how the allocated SDR quotas can be used to support Ukraine,” the minister said. .

As noted, Ukrainian President Volodymyr Zelensky, in his speech at the spring meetings of the IMF and the World Bank, indicated that the country needed support of up to $7 billion a month, and Prime Minister Denys Shmyhal noted that up to $5 billion was needed. monthly to cover the budget deficit.

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