US disburses $20 billion loan to Ukraine

The US Treasury Department announced on November 10 that it had transferred $20 billion to the World Bank (WB) to support Ukraine, with the money taken from frozen Russian assets.

US Treasury Secretary Janet Yellen said the money was part of a $50 billion loan package agreed by the Group of Seven (G7) advanced economies to support Ukraine. The $50 billion credit package, which will last for 30 years, will be financed from the interest on $300 billion in Russian assets frozen in the West.

Reuters on November 10 quoted Ms. Yellen as saying that G7 loans will help ensure Ukraine has the resources needed to maintain emergency services, hospitals and other activities supporting the conflict with Russia.

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Ukrainian President Volodymyr Zelensky expressed gratitude for the move on November 10, stressing that “this is a strong act of justice.” Russian officials did not immediately comment on the US move.

Initially, the Biden administration planned to split the $20 billion loan to Ukraine in half, with one half for military purposes and the other for economic purposes. However, the military funds would need congressional approval, which would be difficult given Republicans control of both houses of Congress next term. So the White House’s latest plan is to allocate all the money to non-military purposes.

Ukrainian President Volodymyr Zelensky (left) meets with US Treasury Secretary Janet Yellen in February 2023

The US Treasury Department said the money will be transferred to a new World Bank fund created to provide financial support to Ukraine, under the mechanism called "Facilitating Investment Resources to Strengthen Ukraine Financial Intermediation Facility" (FORTIS Ukraine FIF).

A US Treasury official said Ms. Janet Yellen personally oversaw the transfer of $20 billion to the World Bank fund. The World Bank has set up a similar fund for economic and humanitarian assistance in Afghanistan. The organization has a charter that will not handle military aid packages.

Source: https://thanhnien.vn/my-giai-ngan-khoan-vay-20-ti-usd-cho-ukraine-185241211073438355.htm