KfW ready to aid eastern Ukraine: EUR 500 million for reconstruction
Press Release from 2015-04-01 / Group
- Untied commercial loan for infrastructure projects
- Aid for internally displaced persons from the Donetsk and Lugansk regions
- New and improved roads, medical facilities and modernisation of power transmission lines
KfW Development Bank has signed a framework agreement for loans totalling EUR 500 million on behalf of the German federal government, which has provided a guarantee for these loans. The loans are primarily earmarked for modernisations in the transport sector, energy sector, heating supply, energy efficiency, water supply and waste water disposal, social infrastructure and housing construction/reconstruction. Due to the current crisis in the Ukrainian financial sector, a project is also planned to protect the deposits of small savers by strengthening the Ukrainian deposit guarantee fund.
"KfW is proud to be able to lend its expertise to support reconstruction work in the eastern Ukraine. As a long-standing partner of the Ukraine, we're prepared to finance the urgently needed reconstruction measures which will make it much easier to accommodate refugees who've been displaced internally from the east of the country," says Dr Norbert Kloppenburg, Member of the Executive Board of KfW.
The projects will be identified within a year and individual loan agreements concluded.
From 2002 to 2014 KfW Development Bank pledged around EUR 270 million (EUR 193 million in budget funds and approx. EUR 76 million in KfW's own funds) for projects in the following areas: financial sector development, electricity supply, municipal drinking water supply and waste water disposal, social infrastructure in municipalities and nature conservation.