Mechanism for stabilisation fund drawdown
18 November 2008
On 4 November 2008, the Cabinet of Ministers approved the mechanism for lending Stabilisation Fund monies to Ukrainian banks and economic agents.
Ukrainian banks and economic agents who lack sufficient funds to repay, refinance and service loans from foreign investors received before September 15, 2008 may apply to the Government, showing:
- detailed calculations and substantiation of the amount required
- detailed substantiation of all allocated expenditure
- proof of their inability to obtain financing from other sources
- an explanation of the likely consequences of their application being refused
The decision whether or not to approve each application will be taken by the Ministry of Finance and other central government bodies, who will also be responsible for ensuring that loans are both properly used and fully repaid.
The Stabilisation Fund is part of the state budget special fund and is being sourced from privatisation of state property and targeted placement of state securities. It is aimed at maintaining Ukraine’s economic stability, energy security and food safety, as well as reducing its exposure to the negative consequences of financial crisis, protecting its economy from inflation and providing equilibrium in key markets.
Law: The Cabinet of Ministers of Ukraine Decree No. 961 (4 November 2008) On Approving the Procedure of Stabilization Fund Drawdown on Credit Arrangement for Repayment, Refinancing and/ or Service of Loans Received by Domestic Banking Institutions and Economic Agents from Foreign Investors by 15 September 2008
Back to top