Ukraine intends to borrow up to $350M from Deutsche Bank this year

"In order to implement the Law of Ukraine  ‘On the State Budget of Ukraine for 2020’, the Cabinet of Ministers of Ukraine decides: to carry out state external borrowing in 2020 by attracting a loan from Deutsche Bank AG," reads Cabinet’s resolution No.1291 as of December 23, 2020.

According to the resolution, the government’s external borrowing is carried out by raising a loan, which does not exceed $350 million and is provided under a loan agreement between Ukraine, Deutsche Bank AG and Global Loan Agency Services Limited within the limits provided by the Law of Ukraine “On the State Budget of Ukraine for 2020 year".

The loan amount accrues interest income, which consists of the LIBOR rate in U.S. dollars for a period of three months, with loan margins of up to 5.75% per annum. Interest income is paid every three months after the date of receipt of credit funds in line with the terms of the loan agreement.

The final repayment of the loan is made six months after the date of receipt of the loan, according to the resolution.

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