Ukraine has received its first concessional financing from the Government of the Republic of Korea. This became possible following the signing of a Framework Agreement between the governments of the two countries in April 2024. According to the agreement, Ukraine is eligible to receive loans of up to $2.1 billion between 2024 and 2029.
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Ukraine’s Minister of Finance, Serhiy Marchenko, expressed gratitude to the Government of the Republic of Korea for strengthening cooperation, which allows Ukraine to mobilize additional resources to meet the urgent needs of the state budget during the martial law period. “This funding will not only help cover immediate budgetary expenditures but will also lay the foundation for further economic initiatives aimed at recovery and growth,” Marchenko noted.
The loan has a 20-year term, with an interest rate of only 1.0% per annum. Additionally, a grace period of 5 years is provided from the date of the loan agreement, reducing the financial burden on the state budget in the coming years.
This funding is a significant step in the country’s economic recovery, supporting the stability of the state budget in wartime conditions, while also opening new opportunities for cooperation with other international partners.
