WASHINGTON, May 16 -- The U.S. Agency for International Development issued the following news release:
Today, the National Bank of Ukraine, acting on behalf of the government of Ukraine, closed on its offering of a $1 billion sovereign bond, guaranteed by the United States of America, acting through the U.S. Agency for International Development. This guarantee demonstrates the strong U.S. commitment to the people of Ukraine, enabling Ukraine to access affordable financing from international capital markets.
The proceeds of the guaranteed bond will strengthen the government of Ukraine's ability to protect the most economically vulnerable Ukrainians from the impact of necessary economic adjustments, for example, by supporting expansion of the social safety net. The $1 billion guarantee is just one component of the broader international support package for Ukraine, which is estimated to total approximately $27 billion over the next two years. The U.S. support package for Ukraine's transition includes the $1 billion loan guarantee and an additional $50 million in technical assistance.
"We welcome the commitment of the government of Ukraine to ensure that the proceeds raised from this bond issuance will contribute to social spending and protect the most economically vulnerable Ukrainians from the impact of necessary economic adjustments," said Paige Alexander, Assistant Administrator for Europe and Eurasia at the U.S. Agency for International Development. "The proceeds from today's $1 billion bond issuance help bolster Ukraine's economy and highlight again strong U.S. support for Ukrainians as they prepare for the May 25 election and implement necessary economic and political reforms."
Congress provided authorization on April 1 for the $1 billion loan guarantee for Ukraine; President Obama signed the "Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014" into law on April 3, 2014.
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