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US unblocked granting Ukraine 1bn dollars in loan guarantees

Petro Poroshenko met with Joe Biden.

US unblocked granting Ukraine 1bn dollars in loan guarantees
Photo: Photo: president.gov.ua

On the sidelines of the 71st session of the UN General Assembly, President Petro Poroshenko met on 21 September with US Vice President Joseph Biden, who, in particular, informed Poroshenko about the US readiness to provide Ukraine with 1bn dollars in loan guarantees, as Ukraine has fulfilled all the necessary conditions.

In addition, the sides discussed the situation in Donbass and the implementation of Minsk agreements, the presidential press service reported.

On Tuesday, Poroshenko also held meetings with the presidents of Turkey, Recep Tayyip Erdogan, Latvia's Raimonds Vējonis and Croatia's Kolinda Grabar-Kitarovic.

Granting Ukraine third credit guarantees for 1n dollars has been announced a long time ago. It was link to the release of the next tranche of the IMF to Ukraine that the Fund has recently released.

US loan guarantees will be used for the issuance 1bn dollars' worth of Eurobonds. The securities will be guaranteed by the US government, due to which their interest rate on them is very low - no more than two percent.

The Cabinet has said the money will be used for social support of the most vulnerable population of Ukraine. The securities will become mature in five years (in 2021).

In May 2014 Ukraine attracted 1bn dollars under the US guaranties under record low 1.844% annual interests.

In May 2015 Ukraine has floated the new issue of Eurobonds worth 1bn dollars under the US guaranties. The interest rate was 1.847% per annum.