The federal government will provide a second $200 million low-interest loan to Ukraine to help stabilize its economy as it wages a battle with Russian-backed rebel forces in the east.
The federal government announced the loan in a news release Wednesday morning. The funds add to another $200 million low-interest loan that the federal government pledged to Ukraine last September.
The new loan agreement will include a provision allowing the Canadian government to audit how the funds are used, as well as require Ukraine to provide detailed reports.
The funds are intended to “restore macroeconomic stability and promote sustainable growth,” and will be disbursed by Export Development Canada after the next review of the International Monetary Fund’s economic support program for Ukraine, the government release said.
“Since the onset of the crisis, Canada has stood proudly and firmly alongside the people of Ukraine as they have courageously struggled for peace and freedom against the Putin regime,” Prime Minister Stephen Harper said in the statement.
“The loan announced today will help promote economic and social stability as the Ukrainian government works to re-build itself into a democratic, independent, and prosperous country, free from aggressors.”
Ukraine’s economy is suffering because of its war with rebel forces, and Ukrainian President Petro Poroshenko has reached out to the international community for help.
Canada has pledged support for Ukraine in its battle with Russian-backed rebels in other ways, including slapping economic and travel sanctions against more than 200 Russian and Ukrainian individuals and entities.
Canada has also provided non-lethal equipment as well as training for the Ukrainian Armed Forces.
