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Wednesday, August 23, 2017

$152 million raised by Ukraine Finance Ministry to complete subway construction in Dnipropetrovsk

The Ukrainian Finance Minister recently signed a loan agreement with the European Investment Bank to raise $152 million to finish constructing the first stage of the subway in Dnipropetrovsk.

Dnepropetrovsk is Ukraine's fourth largest city, with approximately one million residents. It is located southeast of Ukraine's capital Kiev on the Dnieper River in the south-central part of the country.

The interest rate on the loan as of Oct. 21 was 1 percent, with a grace period of six years and a repayment term of 25 years.

"The loan money will be issued on an irrevocable basis to Dnipropetrovsk Metropoliten. The repayment of the loan principal to the EIB will be carried out from 2019 at the expense of the national budget. Costs on servicing the loan will be compensated for by Dnipropetrovsk City Council," the Finance Ministry said.

The project, which was developed jointly with the EIB, will see the expansion of the subway for 2.5 miles along Karl Marx Avenue.

To implement the project, Ukraine raised a loan of $209 from the European Bank for Reconstruction and Development on July 27, 2012.