Deutsche Bank lends Ukraine $340.7 mln in late 2020 – Finance Ministry

Ukraine in the last days of 2020 raised a short-term loan from Deutsche Bank AG London for $340.7 million, the Ministry of Finance of Ukraine said on Monday.

According to resolution of the Cabinet of Ministers No. 1291 of December 23, it is about a bridge loan for up to six months at a rate of LIBOR plus 5.75% up to three months which can be repaid ahead of schedule in case of a change in the market price of Ukrainian eurobonds or their new issue on terms defined by the loan agreement.

Earlier, experts predicted the possible attraction of bridge financing by Ukraine for the period of negotiations with the International Monetary Fund (IMF) before receiving the second tranche under the Stand-By Arrangement or issuing eurobonds. In previous years, Ukraine has already resorted to this practice.

The Finance Ministry also said that in 2020 it raised another private loan for EUR 250 million from Cargill Financial Services International, Inc. According to resolution of the Cabinet of Ministers No. 717 of August 17, interest rates were set at the level of 5.95% per annum for contracts with maturity in three years and at 6.85% in five years.

In general, last year, Ukraine's external borrowings, according to the Ministry of Finance, amounted to UAH 232.3 billion, or 92.4% of the plan, and domestic to UAH 389.2 billion, or 94.6% of the plan.

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