January 28, 2015 – Ottawa
The additional support – in the form of a second low-interest loan – aims to help Ukraine’s newly-elected government restore macroeconomic stability, promote sustainable growth, and support programming consistent with Canadian development priorities.
The second loan, which will be delivered by Export Development Canada, is part of a broader package of additional international assistance for Ukraine, and is conditional on the approval of the next review of Ukraine’s International Monetary Fund (IMF)-supported program. Funds will be disbursed following agreement on terms and conditions consistent with those of Canada’s first loan. As with any financial support provided by Canada, the loan will include necessary safeguards to ensure accountability and transparency with respect to the use of funds.
Today’s announcement is one of several measures undertaken by the Government of Canada in concert with the international community to help address the ongoing crisis in Ukraine.
Canada provided a first $200 million low-interest loan to Ukraine in September 2014.
The second $200 million low-interest loan announced today will include a provision enabling Canada to perform an audit of funds used during the course of the agreement, as well as an obligation for Ukraine to provide regular reports detailing the funds’ use.
This announcement brings the total value of Canada’s loan agreements with Ukraine to $400 million.
Since March 2014, Canada has imposed a broad range of political and economic sanctions affecting more than 200 Russian and Ukrainian individuals and entities.
Canada has provided Ukraine with a range of non-lethal security assistance and equipment, as well as training for members of the Ukrainian Armed Forces.
Canada sent hundreds of short- and long-term observers to the May 25, 2014 Presidential election and the October 26, 2014 Parliamentary election.
Prime Minister Stephen Harper also visited Ukraine in March and June 2014.
“Since the onset of the crisis, Canada has stood proudly and firmly alongside the people of Ukraine as they have courageously struggled for peace and freedom against the Putin regime. The loan announced today will help promote economic and social stability as the Ukrainian government works to re-build itself into a democratic, independent, and prosperous country, free from aggressors.” – Prime Minister Stephen Harper