Japan inks 13 bil. Yen loan deal to save Ukrainian economy

Japan on Monday signed a 13 billion yen ($100 million) loan agreement with Ukraine, offering financial assistance as the country faces an economic crisis due to the Russian invasion.

The aid will be co-financed with the World Bank and integrated into the Ukrainian government’s budget, the Japan International Cooperation Agency said. Ukraine will not use the funds for military purposes.

Akihiko Tanaka (L), head of the Japan International Cooperation Agency, attends a virtual signing ceremony in Tokyo with Ukrainian Finance Minister Sergii Marchenko on May 16, 2022. (Kyodo)

The loan aims to “encourage demonopolization and anti-corruption institutions, strengthen land and credit markets, and strengthen the social safety net,” JICA said.

JICA Head Akihiko Tanaka and Ukrainian Finance Minister Sergii Marchenko signed the agreement online.

“The invasion and the humanitarian crisis are the greatest challenge facing the international order and the common values ​​of democracy and the rule of law this century,” Tanaka said at the signing ceremony.

“Millions of Ukrainians are now fighting not only for the independence of our state, but also for the security of Europe and the democratic values ​​of the whole world,” Marchenko said in response.

The deal came after Prime Minister Fumio Kishida said in April that Japan would increase its total yen loans to Ukraine to $300 million.

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Christi C. Elwood