Ukraine Signs EUR 500M Loan Deal With Germany

An armoured military vehicle drives on a road close to a building destroyed in fighting between militants and Ukrainian forces near the town of Slaviansk, Ukraine, 5 October 2014. Photo EPA/BGNES

Ukraine on Wednesday signed a EUR 500M loan agreement with Germany to rebuild public infrastructure in its eastern regions.

Ukraine’s Prime Minister Prime Minister Arseniy Yatsenyuk said that the loan will be used to finance the reconstruction of roads, bridges, hospitals and other elements of public infrastructure, ITAR-TASS reported.

Yatsenyuk, who arrived in Berlin earlier on Wednesday for a two-day visit at the invitation of German Chancellor Angela Merkel, also said the loan has maturity of 20 years and was extended at a very low interest rate.

Merkel pledged to extend the loan during her first visit to Kiev in August.

Fighting between pro-Russian rebels and Kiev government forces in eastern Ukraine since April has damaged infrastructure in the coal-rich region and claimed more than 4,700 lives.

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