US and Ukraine Sign $1 Billion Loan Guarantee
The Secretary of the US Treasury, Jack Lew, and Ukrainian Finance Minister, Oleksandr Shlapak signed Monday in Washington the agreement whereby the United States will help with one billion of dollars to Ukraine with the aim of supporting the reforms for stabilize the Ukrainian economy.
The line of loan guarantees, which had already been approved by Congress at the beginning of the month, aims to support a program of reforms proposed by the new pro-European Cabinet and who will have the help of the International Monetary Fund (IMF).
In the Act of ratification, held at the headquarters of the treasury, Lew underlined that these loan guarantees show “the decided commitment” of the US to “ensure the stabilization and the progress of democracy in Ukraine.”
“In this way, the Government of Ukraine will have capacity to access funding at low cost of international capital markets and help facilitate the economic transition in Ukraine, especially for the most vulnerable,” said the Secretary of the Treasury.
Furthermore, Shlapak said that this “assistance is the first in a broader international financial aid plan” and said that”practically concluded” negotiations with the IMF for a program of between 14 and 18 billion dollars.
During the mid-year IMF meeting, held last week, the Managing Director of the Agency, Christine Lagarde, said that the final program will be ready for “late April or early May”.
The Ukrainian Minister stressed the commitment of the authorities of his country to carry forward structural reforms that will help to heal the ailing economy of Ukraine.
Lew also took the opportunity to reiterate that the US is “fully prepared” to impose “additional sanctions” to Russia for “violation of the sovereignty of Ukraine”.
On April 22, the US Vice-President, Joe Biden, will travel to Kiev to express strong us support.UU. the people of Ukraine