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Ukraine expects $12 bln loan from Russia in early 2014 - Azarov

25-12-2013 12:31

Ukrainian Prime Minister Mykola Azarov expects to receive another $12 billion of a loan from Russia in early 2014.

"We expect the next $12 billion at the beginning of next year," he said opening his Cabinet meeting on Wednesday. Azarov said the Russian loan is a very serious, if not a crucial factor for stabilizing state finance and economy; specifically the state will be able to stand by a number of its social obligations which it had difficulties with lately. "Thanks to Russia's loan in 2014 Ukraine will be able to enter foreign lending markets at more advantageous terms," the prime minister added. On December 17, 2013, Ukrainian and Russian Presidents Viktor Yanukovych and Vladimir Putin agreed that Russia would buy Ukrainian two-year eurobonds worth $3 billion by the end of 2013 using the funds of the National Welfare Fund, with a coupon of 5% per annum. Later Putin said that VTB Capital organized the issue of the eurobonds. He said that Ukraine proposed to do so. The selection of an organizer for Russia is not a principal issue, he said.