The Strategist

Ukraine receives €200M in preferential loan from Italy

08/17/2022 - 10:41

The €200 million loan has no interest and will be used by Ukraine to pay teacher wages, the Ukrainian Finance Ministry announced on its website on Wednesday.

"The Italian Republic granted Ukraine a €200 million concessional loan on August 15, 2022. The loan agreement stipulates that the money will be made available at no interest for a period of 15 years (taking into account the favorable period of postponement of loan repayment of 7.5 years)," the ministry reported.

The funds will be used for expenditure provision and teacher salaries at general secondary educational institutions.

On August 5, Serhiy Marchenko, Ukraine's minister of finance, inked an agreement with Italy to give Kiev loans totaling €200 million.

Currently, the country's budget deficit is around $5 billion per month, two-thirds of the budget is funded by loans and grants from abroad, and three-quarters of budget expenditures are sent for military objectives.