The United States is working together with international partners to ensure Ukraine has the support it needs as it continues to move forward with reforms that will restore economic stability and lay the groundwork for sustainable growth.
As part of the international effort, the United States intends to provide a $1 billion loan guarantee to the Government of Ukraine in the first half of 2015, provided Ukraine remains on-track with the reform program it has agreed with the International Monetary Fund (IMF). If Ukraine continues making concrete progress on its reform agenda and if conditions warrant, the U.S. Administration will be willing, working with Congress, to provide an additional $1 billion loan guarantee in late 2015 – for total potential support of $2 billion in 2015. The proceeds of these loan guarantees will help enable the Government of Ukraine to protect the most vulnerable Ukrainian households from the impact of needed economic adjustment. This new U.S. support builds upon the nearly $340 million in assistance that we have provided to Ukraine in 2014, in addition to the $1 billion sovereign loan guarantee provided in May 2014.
We commend the progress by Ukrainian authorities – amid extraordinary circumstances – in implementing a robust reform program, in cooperation with the International Monetary Fund and World Bank, which includes measures to: (1) tackle corruption, (2) overhaul the energy sector, (3) repair the financial system, (4) strengthen the business environment and adherence to the rule of law, and (5) put Ukraine’s finances on a sustainable path. The authorities have demonstrated strong progress to date, and this positive reform momentum has occurred despite Russia’s destabilizing actions in Crimea and eastern Ukraine.
A mission from the International Monetary Fund is currently in Kyiv working with the Ukrainian authorities to assess their reform efforts and develop a new economic support package.
“We are encouraged by the strong reform progress made by the Ukrainian authorities to date, and applaud their strong cooperation with the IMF and their continued commitment to difficult but necessary reforms,” said U.S. Treasury Secretary Jacob J. Lew. “The U.S. support that I am announcing today will be part of a broader international package of support to help ensure the success of Ukraine’s reform program and ultimately restore financial stability, unleash economic potential, and allow Ukraine’s people to better achieve their economic aspirations.”