Ukraine + 1 more

Additional Support for Emergency Economic Recovery to Ukraine

On June 7, Ms. SUZUKI Takako, State Minister for Foreign Affairs, and H. E. Mr. Sergiy KORSUNSKY, Ambassador Extraordinary and Plenipotentiary of Ukraine, signed and exchanged notes concerning of additional financial support of 65 billion yen for "Emergency Economic Reconstruction Development Policy Loan" (signed and exchanged : April 28, 2022, up to 13 billion yen) in Tokyo.

1. Outline

(1) This program is to provide additional financial support as a parallel financing with the International Bank for Reconstruction and Development, to meet short-term financial demand of the Government of Ukraine which is facing an economic crisis due to the effects of the Russia’s aggression, and to support promoting various institutional reforms in the economic field.

This additional financial support corresponds Prime Minister KISHIDA Fumio’s announcements which are "Increase financial support already announced 100 million dollars to 300 million dollars" at the summit video conference on the situation in Ukraine on April 19, 2022 held at the request of President Biden of the United States of America, and the “Double financial support from 300 million dollars to 600 million dollars” at press conference on May 19, 2022.

(2) Conditions

i. Additional financial support : 65 billion yen (after addition : up to 78 billion yen)

ii. Interest rate : 1.0% per annum

iii. Repayment period : 30 years (including a 10-year grace period)

iv. Procurement terms : General untied

2. The Government of Japan will continue to provide support for and stand by the people of Ukraine who are facing hardship, in collaboration with the international community, including the G7 members.

[Reference]

Ukraine covers an area of approximately 603,700 square kilometers (roughly 1.6 times the area of Japan), and has a population of 44.135 million people (World Bank, 2020) and a gross national income (GNI) per capita of 3,540 U.S. dollars (World Bank, 2020).