Parliament of Ukraine Ratified Agreement on Financial Cooperation between Cabinet of Ministers of Ukraine and Government of the Federal Republic of Germany
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On June 15, 2021, at the meeting of the Parliament of Ukraine, the Members of Parliament supported the draft Law of Ukraine "On Ratification of the Agreement on Financial Cooperation between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany (Appropriation 2012 - 2019)". The Ministry of Finance of Ukraine has prepared the draft in compliance with Article 9 of the Law of Ukraine "On International Treaties of Ukraine".
The Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany signed on December 17, 2020, has a framework nature and will ensure acceleration of the procedure of conclusion by decision of the Government of Ukraine of certain agreements and contracts with KfW on the projects which preliminary agreements were reached during Ukrainian-German intergovernmental negotiations.
The ratification of the Agreement will create legal grounds for the Government of Ukraine to attract concessional financing from KfW for a total amount of up to EUR 214.55 million and grant financing of up to EUR 38.9 million.
The Agreement defines a generalized list of investment projects in the field of energy, infrastructure, entrepreneurship, etc., grants to support investment projects and individual grants to finance projects in education and development of local self-government, and basic conditions for attracting KfW resources.
Financial terms of credit resources attraction: 30 years, including a grace period - 10 years; interest rate - 2% per annum; commitment fee - 0,25% per annum.