Ukraine receives $773 million loan from Canada on concessional terms amid ongoing war

In the midst of the ongoing ruthless war with Russia, the Ukrainian government on Friday received a 1 billion Canadian dollar (USD 773 million) loan from Canada on concessional terms. According to the Zelenskyy regime, the funds were raised in compliance with Ukraine and Canada's loan agreement. Notably, these are the first funds received by Ukraine through the International Monetary Fund's (IMF's) administrative account mechanism. The Ukrainian administration stated that the loan has a ten-year term and is issued at an interest rate of 1.69% per annum. 

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

The funds will be directed to the state budget in order to pay priority expenditures, including social and humanitarian needs. Earlier in the month of April, the International Monetary Fund resolved to establish an administrative account for crediting funds in the form of a share of Special Drawing Rights (SDRs) from donor countries to war-torn Ukraine.

All funds to be used to help Ukraine maintain its financial stability

The IMF had also clarified that all funds raised through the use of this account should be utilised to provide grants or loans to Ukraine to help it maintain its financial stability. Notably, Ukrainian President Volodymyr Zelenskyy also launched the UNITED24 website in May for collecting charitable donations in support of his country. According to the website, the funds would be sent to the National Bank of Ukraine's official accounts and allocated by assigned ministries to fulfil the most immediate requirements. 

Zelenskyy lauds assistance provided by US

Furthermore, Zelenskyy had stated that UNITED24 is not just fundraising but also one of the ways to "prove to Russia that evil will not win." It is pertinent to mention here that several countries across the world have provided humanitarian, financial as well as military support to Ukraine since Russia launched a full-fledged war in late February. Meanwhile, embattled President Zelenskyy has lauded the assistance provided by the United States, stating that the country has become "a true leader in Ukraine's international support."

Image: AP