KIEV, July 18 (RIA Novosti) – Ukraine and Japan signed an agreement for a loan of $100 million on Friday, the press service of the Ukrainian Finance Ministry reported.
"Once the agreement enters into force, some 10 billion Japanese yen [$100 million] will be added to the general fund of the state budget as additional financing under the joint project with the World Bank [Development Policy Loan],” the statement said.
The loan term is for 20 years with a grace period of 6 years and an interest rate of 0.95 percent per annum. The one-time commission fee is 0.1 percent.
The funds will be used to support policy and institutional reforms in Ukraine through the promotion of efficient management, transparency and accountability in the public sector; the simplification of conditions and the reduction of business costs, the reform of inefficient and unfair energy subsidies and the protection of the poor, the press service said.
