South Korea to grant Ukraine $100 million in subsidised loan

Ukraine’s Ministry of Finance has announced the signing of a $100 million concessional loan agreement with South Korea, aimed at bolstering the country's public finances.

The agreement, signed on October 2 by Ukraine’s Finance Minister, Serhiy Marchenko, and the Export-Import Bank of Korea, marks South Korea's first financial aid contribution directly to Ukraine's state budget, Caliber.Az reports, citing foreign media.

The loan, with a 20-year term, carries an annual interest rate of 1%, alongside a five-year grace period during which no interest will be charged.

The Ministry also highlighted that in April, the governments of Ukraine and South Korea had reached an agreement allowing Ukraine to access a total of $2.1 billion in Korean loans between 2024 and 2029.

Notably, since Russia invaded Ukraine in February 2022, South Korea has emerged as a steadfast ally, demonstrating its commitment to global peace and humanitarian efforts.

The nation has pledged a significant financial aid package totalling $394 million for 2024, which includes approximately $98 million earmarked for reconstruction and $196 million for humanitarian assistance.

This support is designed to address immediate humanitarian needs while also facilitating long-term recovery and rebuilding efforts. South Korea's multifaceted aid strategy reflects its strategic interests and regional diplomatic priorities.

By Aghakazim Guliyev