(CLO) The G7 group has reached an agreement to provide about 50 billion USD to Ukraine in the form of loans secured by profits from frozen Russian assets, expected to begin disbursement from December.
"Our goal is to start disbursing funds by the end of the year," the statement said as global financial leaders gathered in Washington for the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB).
G7 Defense Ministers with NATO Secretary General Mark Rutte during the G7 Defense Ministers meeting in Naples, Italy on October 19, 2024. Photo: Reuters
In an additional statement from the G7 finance ministers, the loans will be disbursed through bilateral loans, starting on December 1 and lasting until the end of 2027, “in tranches reflecting Ukraine’s urgent financing needs.”
Each bilateral loan will take effect no later than June 30, 2025, allowing G7 members flexibility in arranging the details.
Earlier on Wednesday, the US announced a $20 billion contribution of this loan to Ukraine in December. Another $20 billion is expected to come from the EU, including G7 members Germany, France and Italy, while the remaining $10 billion will be split equally between Canada, the UK and Japan.
The loans will be disbursed through multiple channels, including a Macro-Financial Assistance Facility from the EU, the IMF's Multi-Country Administrative Account for Ukraine and the newly established Financial Intermediation Facility for Ukraine at the World Bank.
About 260 billion euros ($280.62 billion) of Russia's central bank's reserve assets have been frozen by the West following the conflict between Russia and Ukraine in February 2022.
The bulk of these assets are held at Euroclear, a securities depository in Belgium, making the EU a key player in any plans to use them.
Hong Hanh (according to Reuters)
Source: https://www.congluan.vn/g7-se-giai-ngan-khoan-vay-50-ty-usd-cho-ukraine-tu-thang-12-post318548.html
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