The United States says it is working along with international partners to ensure that Ukraine has the support it needs as it moves forward with reforms aimed at restoring economic stability and laying the groundwork for sustainable growth.
As part of the international effort, the United States intends to provide a $1 billion loan guarantee to Ukraine’s government in the first half of 2015, provided the country remains on track with the reform program it agreed to with the International Monetary Fund (IMF), the Treasury Department announced in a January 13 news release.
“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 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.”
If Ukraine continues making concrete progress on its reform agenda and if conditions warrant, the United States will be willing to provide an additional $1 billion loan guarantee in late 2015 — for total potential support of $2 billion in 2015, the Treasury Department said.
The proceeds of the loan guarantees will help enable Ukraine’s government 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 the United States 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 Treasury Department said.
It added that the Ukrainian authorities have demonstrated strong progress to date, generating “positive reform momentum” despite Russia’s destabilizing actions in Crimea and eastern Ukraine.
An IMF mission is currently in Kyiv working with the Ukrainian authorities to assess their reform efforts and develop a new economic support package.