The US Treasury has pledged an additional $1 billion in loan guarantee to Kiev bringing its total support to $2 billion, on condition Ukraine sticks to its reform agenda. The move follows the EU’s offer of another $2.1 billion to Kiev last week.
US Vice President Joe Biden told Ukraine’s Prime Minister Yatsenyuk about the US administration’s offer during a phone conversation on Tuesday.
The US first extended a helping hand to Ukraine in May 2014, when it authorized $1 billion in loan guarantees, as well as $340 million in loan assistance. This money is due to arrive in the first sixth months of 2015. The new guarantee of $1 billion will be dispersed by the end of the year.
The latest loan guarantee will be “part of the international effort” to help rebuild Ukraine’s ailing economy, which has entered recession and is at risk of default. The government’s 2015 budget envisions a 4.3 percent contraction in GDP.