The Ukrainian economy will receive preferential loans equivalent to $2,1 billion from the Economic Development Cooperation Fund (EDCF) over the next five years. The draft of corresponding Framework Agreement between the Government of Ukraine and the Government of the Republic of Korea was approved by the Cabinet of Ministers of Ukraine at a meeting on 02 April 2024. Yuliia Svyrydenko, the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, was entrusted to sign the Framework Agreement from the Ukrainian Government.

"Another step has been taken towards finalizing all necessary internal procedures and beginning the practical implementation of agreements with our Korean friends. Ukraine or a resident of Ukraine who receives a state guarantee will be able to attract preferential loans from EDCF. The funds will be used for the purchase of equipment and rehabilitation projects," noted Yuliia Svyrydenko.

Under the terms of the Framework Agreement, the Korean Government provides the opportunity for the Borrower to obtain loans from EDCF up to a maximum commitment amount in Korean won, which does not exceed the equivalent of two billion one hundred million US dollars (2 100 000 000 USD) for the years 2024-2029 to finance EDCF loan projects in Ukraine. The Korean and Ukrainian governments should identify candidate projects in close cooperation with each other. The details of each individual project, the amount and terms of the loan will be determined in separate loan agreements entered into between the Export-Import Bank of Korea and the borrower.

Let us remind you that the Agreement on loans from EDCF was signed by the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine Yuliia Svyrydenko and the Ambassador of Korea to Ukraine Kim Hyung on 13 September 2023 in the presence of the President of Ukraine Volodymyr Zelenskyy and the the Minister of Land, Infrastructure and Transport of Korea Won Hee-ryong. The document was ratified by the Verkhovna Rada of Ukraine on 21 December 2023.

In accordance with the Agreement, at the first stage such loans can be raised for the supply of equipment. From 2025, it will be possible to attract infrastructure loans for reconstruction.

For information:

The Economic Development Cooperation Fund (EDCF) was established by the Government of the Republic of Korea to promote economic cooperation between Korea and developing countries. The Fund provides financial support to partner countries for their industrial development and economic stability.