OREANDA-NEWS. Ukraine has received a long-term soft loan from Japan worth US$331 million in the framework of the joint project with the World Bank Development Policy Loan (DPL-II). The loan was provided through the Japan International Cooperation Agency (JICA).

A concessional loan is the evidence of active implementation by Ukraine of important structural economic reforms as the demand for granting this loan was the implementation by Ukraine of the 10 structural reforms, including the following areas: the elimination of the tax ‘holes’ through the introduction of electronic administration of VAT; the reforming the gas market; the establishment of effective control tools not just over the budget expenditure but the budget revenue as well, which involved extending the powers of the Accounting Chamber of Ukraine, etc.

The loan from the Japanese Government to the tune of US$331 million will be transferred to the General Fund of the state budget, thus helping to finance priority needs of the country, including social expenditures and key reforms.

The loan at a glance:
Period: 20 years
Grace period: 6 years
Interest rate: Libor + 0.05%, or less than 1% per annum
Payment: 2 times a year.