Ukraine expects $2.1 bln in preferential loans from Republic of Korea before 2030
MOSCOW. April 3 (Interfax) - Ukraine will receive preferential loans of $2.1 billion from the Republic of Korea's government via the Economic Development Cooperation Fund (EDCF) over the next few years for equipment purchases and reconstruction projects, Ukrainian media reported, quoting the Ukrainian Economy Ministry's website.
"Another step has been taken towards finalizing all necessary internal procedures and starting the practical implementation of agreements with our Korean friends. Ukraine or a Ukrainian resident who receives state guarantees will be able to attract preferential loans from EDCF. The funds will be used for equipment procurement and reconstruction projects," said Yulia Sviridenko, Ukrainian first deputy prime minister and the country's economy minister.
The Ukrainian government has approved the corresponding framework agreement between Ukraine and the Republic of Korea. Sviridenko was asked to sign it on the Ukrainian government's behalf.
Under the agreement, the government of Korea provides the opportunity to receive the equivalent of up to $2.1 billion in loans in Korean won from EDCF to finance EDCF projects in Ukraine in 2024-2029.
"The governments of Korea and Ukraine are to identify candidate projects in close cooperation with each other. Details of each individual project, the amount, and the terms of lending will be determined in separate credit agreements concluded between the Export-Import Bank of Korea and the borrower," the ministry said.
The Sviridenko and the Korean ambassador to Ukraine, Kim Hyong, signed an intergovernmental agreement on EDFC loans for projects involving Korean companies in September 2023. The Verkhovna Rada ratified it in December 2023.
"According to the agreement, such loans can be used for equipment supply at the first stage. From 2025, it will be possible to attract infrastructure loans for reconstruction," the ministry said.
The Korean government set the EDCF up in 1987 to promote economic cooperation between Seoul and developing countries.