Ukraine will attract loans of up to USD 8 billion from the Republic of Korea on preferential terms.
This is stated in the message of the Ministry of Economy, Ukrainian News Agency reports.
According to the report, on May 17, as part of the Asian Leadership Conference, a ceremony was held to sign a preliminary agreement between the government of Ukraine and the government of the Republic of Korea regarding loans from the Economic Development and Cooperation Fund (EDCF), a special division of the Export-Import Bank of Korea.
The event took place within the framework of the visit of the Ukrainian delegation to the Republic of Korea with the participation of the First Lady of Ukraine Olena Zelenska.
"Ukraine is included in the list of priority countries for bilateral cooperation with the Republic of Korea within the framework of the Official Development Assistance (ODA) program. The possibility of receiving the first tranche from the EDCF in the amount of up to USD 300 million will appear already in 2023 within 3-4 months from the moment of signing the second stage agreement, which is expected within a month of today's extremely important event. The next tranche of up to USD 3 billion will become available in 2024, with a gradual increase in the limit to USD 8 billion as the pipeline of projects fills up. Also, Ukraine will be able to use Korean capacities and experience for post-war reconstruction of destroyed infrastructure, industrial and civil facilities," said First Vice Prime Minister - Minister of Economy Yuliya Svyrydenko.
It is noted that the funds will be attracted for a long-term period at minimal interest: the term of the loan can be up to 40 years at 0.15% per annum with a 10-year delay in repayment of the loan.
The loans will be provided by the Export-Import Bank of Korea under the EDCF.
To attract financing for specific projects, separate credit agreements will be concluded.
In addition, it is planned to open an EDCF office in Ukraine.
As Ukrainian News Agency earlier reported, Ukraine is counting on the expansion of aid from South Korea in terms of equipment for the repair of energy infrastructure and offers it to open the production of electric cars in Ukraine.
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