South Korea to Provide Ukraine with $2.1 Billion in Preferential Credits for Recovery
Ukraine will receive $2.1 billion in preferential credits from the Republic of Korea, which will be directed towards recovery projects. These funds are from the Economic Development Cooperation Fund (EDCF) and will be disbursed over the next five years, as reported by the Ministry of Economy of Ukraine.
"Another step has been taken towards finalizing all necessary internal procedures and commencing the practical implementation of agreements with our Korean friends. Ukraine or a resident of Ukraine with state guarantees will have the opportunity to attract preferential credits from the EDCF. The funds will be used for equipment procurement and recovery projects," said Ukraine's Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
According to the terms of the agreement, the governments of Korea and Ukraine will identify candidate projects in close cooperation with each other. Details of each individual project, the amount, and the terms of financing will be determined in separate credit agreements between the Korea Export-Import Bank and the borrower. Initially, these credits can be used for equipment supply, and from 2025, it will be possible to attract infrastructure credits for reconstruction.
It is worth noting that the Economic Development Cooperation Fund (EDCF) was established by the Government of the Republic of Korea to promote economic cooperation between South Korea and developing countries. The Fund provides financial support to partner countries for their industrial development and economic stability.
Earlier, The Gaze reported that Ukraine received the fourth tranche of financing of about $880 million from the IMF under the Extended Fund Facility (EFF) program. The allocation of these funds was approved by the International Monetary Fund's Board of Directors four days ago. Thus, the total amount of funds raised by Ukraine amounts to approximately $5.4 billion out of the program's planned $15.6 billion.
According to Ukraine's Prime Minister Denys Shmyhal, the funds received will help cover priority budget expenditures and support macroeconomic stability in the country. Finance Minister of Ukraine Serhiy Marchenko added that the tranche will also contribute to maintaining financial stability in Ukraine.