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Updated July 30th, 2022 at 06:59 IST

Canada announces $350mn in loan for Ukraine to meet its social, humanitarian expenditures

As the ravaging war continues to batter the already war-ravaged Ukraine for more than five months, it has now lent 450 million CAD ($352 million) from Canada.

Reported by: Ajeet Kumar
Canada
Image: AP | Image:self
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As the ravaging war continues to batter the already war-ravaged Ukraine for more than five months, it has now decided to lent 450 million CAD ($352 million) from Canada in order to meet its social and humanitarian expenditures. According to a statement released by the Ukrainian Finance Ministry on Friday, this came after the Cabinet Ministers made changes to the basic conditions for state external borrowing earlier this year  The Ministry of Finance developed the draft resolution for the possibility of increasing the amount of the preferential loan by 0.45 billion Canadian dollars (nearly $0.35 billion) within the framework of the credit agreement between Kyiv and Ottawa. The ministry categorically mentioned that the funds will be directed to the state budget to finance priority expenses, particularly to ensure priority social and humanitarian payments. payments.

Image: Twitter/MinFin_Ukraine

As per the agreement, the debt-ridden nation agreed to pay an interest rate of 1.69% per annum for the next ten years. Besides, the parties also agreed that the same conditions be implemented in future loan sanctions. "For additional loan tranches, the specified conditions are preserved," it said.  Meanwhile, Ukraine's Minister of Finance, Serhiy Marchenko, expressed his gratitude to Ottawa for supporting its fight against the Russian troops which have been inundating the country with lethal weapons, resulting in the killing of thousands of people since the onset of the so-called "special military operation".

"I am grateful to the Government of Canada and personally to the Deputy Prime Minister, Minister of Finance of Canada Christa Freeland for the unwavering support of Ukraine in the fight for our freedom. The adopted decision once again demonstrates Canada's unchanging leadership in helping the Ukrainian people and the crucial timeliness of supporting Ukraine," said Marchenko.

Canada's aid to Ukraine

Notably, this was the second time that Ukraine sought financial aid from Canada. Earlier in June this year, it had received 1 billion Canadian dollars (nearly $773 million). Ever since the escalation of the war, Canadian Prime Minister, Justin Trudeau, extended his help to Kyiv. In June this year, Trudeau announced to help Ukrainian farmers in restoring production despite Russian troops targetting their agricultural lands. Besides, he also announced providing assistance in building grain storage units in Ukraine. "To help Ukrainian farmers restore production so they can both feed people and export crops, and to help Ukraine increase its grain storage capacity, we’ve just announced funding for agricultural solutions – including grain storage units," he wrote on Twitter. 

Image: AP

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Published July 30th, 2022 at 06:59 IST

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