US to provide $1bn loan guarantee to Ukraine in 2015

The US Tuesday announced intention to provide USD one billion loan guarantee to the Ukrainian government this year, provided Ukraine remained on track with reform program it has agreed with the International Monetary Fund (IMF).
If Ukraine continues making concrete progress on its reform agenda and if conditions warrant, the US Administration will be willing, working with Congress, to provide an additional USD one billion loan guarantee in late 2015 - for total potential support of USD two billion in 2015, the Department of Treasury said in a statement.
The proceeds of these loan guarantees will help enable the government of Ukraine to protect the most vulnerable Ukrainian households from the impact of needed economic adjustment.
This new US support builds upon the nearly USD 340 million in assistance the US has provided to Ukraine in 2014, in addition to the USD one billion sovereign loan guarantee provided in May 2014.
The treasury commended progress by Ukrainian authorities - amid extraordinary circumstances - in implementing a robust reform program, in cooperation with the IMF and World Bank, which includes measures to: tackle corruption, overhaul energy sector, repair financial system, strengthen business environment and adherence to rule of law, and put Ukraine's finances on a sustainable path.
An IMF mission is currently in Kiev working with the Ukrainian authorities to assess their reform efforts and develop a new economic support package.
"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 Lew
"The US 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," he said.