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KIEV, August 12. /ITAR-TASS/. Ukraine’s Verkhovna Rada (parliament) on Tuesday ratified an intergovernmental agreement with Japan on a loan to finance economic reforms in Ukraine.
Under the agreement, Japan’s international cooperation agency will extend a ten billion yen loan (more than 90 million U.S. dollars) to co-finance the World Bank’s systemic project of replenishing Ukraine’s state budget and supporting the government’s reforms. The money will be used to finance measures to ensure transparency and accountability in the government sector, to deregulate businesses and reduce business expenses, to reform the system of inefficient and unfair energy subsidies and improve social protection of the low-income population.
The loan will be extended for a term of 20 years with a grace period of six years and an interest rate of 0.95%.