Ukraine govt approves raising $1.5-bln loan under Japanese govt guarantees, $500-mln loan and $1.2-bln grant from IBRD

MOSCOW. May 19 (Interfax) - The Ukrainian government has approved an agreement on raising a $1.5-billion loan under the Japanese government's guarantees, Prime Minister Denis Shmygal said.

"We endorse an agreement on raising a $1.5-billion loan under the Japanese government's guarantees as part of a development and recovery policy support project," Ukrainian media quoted Shmygal as saying at a government meeting on Friday.

The funds will be earmarked for enhancing social protection and Ukraine's recovery, he said.

The government has also endorsed a decision on raising a $500-million loan and a $1.2-billion grant from the International Bank for Reconstruction and Development (IBRD), he said.

"We make a decision on raising a loan for $500 million and a grant for $1.2 billion from the IBRD," Shmygal said.

The funds are part of a major cooperation project totaling $16.4 billion and 1.4 billion euros, he said.

"The funds are being spent on the payment of wages and pensions, social support, and medicine," he said.