KYIV, 5 June – A loan agreement, which provides for the provision of a loan to Ukraine in the amount of 471.9 billion Japanese yen ($3.3 billion at the current exchange rate), the servicing and repayment of which will be carried out at the expense of future revenues received from immobilized Russian assets, was signed on Thursday by Minister of Finance of Ukraine Serhiy Marchenko and the Head of the Japan International Cooperation Agency (JICA) Office in Ukraine Hideki Matsunaga.

As the Ministry of Finance noted in a press release on the website, the funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism of the G7 countries with a total volume of about $50 billion.

It is noted that the funds received from Japan will be used to finance priority expenditures of the State Budget of Ukraine to support the economy and development of Ukraine.

"Japan is one of Ukraine's key partners. It is the second largest country in terms of budget assistance since February 2022 - more than $8.5 billion has been provided, of which $955 million is on a non-repayable basis," Marchenko said, thanking the Japanese government and the JICA agency.

As reported, on October 25, 2024, the G7 in Washington announced the achievement of a consensus on the collective provision of $50 billion in loans to Ukraine: the US will provide $20 billion, the EU – EUR 18.1 billion, the UK – GBP 2.26 billion ($3.07 billion at the current exchange rate), Canada – CAD 5 billion ($3.66 billion at the current exchange rate).

The updated EFF Extended Fund Facility (ERA) program with the IMF, based on the results of the seventh review, provides that Ukraine will divide external financing from the G7 countries under the ERA mechanism, which is allocated at the expense of frozen Russian assets, into three parts, including the creation of a financial buffer of $10.1 billion in the event of a negative scenario. (om/ez)