Ukraine to get $246.5 mln loan from Japan under fiscal governance support project

MOSCOW. Sept 15 (Interfax) - Ukraine and the International Bank for Reconstruction and Development have signed an agreement on a $246.5-million loan under the Supporting Reconstruction through Smart Fiscal Governance (SURGE) program backed by the government of Japan, Ukrainian media reported on Monday.

"It is planned that the $229.7 million will be allocated for the budget's general fund before the end of 2025. Part of the loan, $16.8 million, will be used to capitalize interest for the purpose of reducing the cost of servicing Ukraine's debt obligations in the coming years," the Ukrainian Finance Ministry said.

The aim of the project is to support the Ukrainian government's efforts to create an effective system for public investment management, improve fiscal governance at the local level, update medium-term and program-based budgeting, and enhance revenue administration.