US offers Ukraine loan guarantee of up to $1B

The Biden administration has offered a sovereign loan guarantee to Ukraine of up to $1 billion to support its economic reform agenda and continued engagement with the International Monetary Fund (IMF) amid Russia's military buildup, Report informs via Business Standard.

Taking to Twitter, US Secretary of State Antony Blinken said, "We are working closely with allies to mobilize robust international support for Ukraine, including a US-backed sovereign loan guarantee of up to $1 billion to support key reforms. This support will bolster Ukraine's ability to deliver prosperity for its people."

"The United States is reaffirming our strong commitment to the Ukrainian people by joining with allies and partners to mobilize robust international support for Ukraine. The US government is offering a sovereign loan guarantee to Ukraine of up to $1 billion to support its economic reform agenda and continued engagement with the International Monetary Fund (IMF)," State Department said.

This offer - combined with the strong partnership between Ukraine, the IMF, other international financial institutions, the G7 and other bilateral donors - will bolster Ukraine's ability to ensure economic stability, growth, and prosperity for its people in the face of Russia's "destabilizing behaviour", according to the official statement.

Blinken also highlighted that between 2014 and 2016, the United States issued three separate $1 billion sovereign loan guarantees to Ukraine which played a critical role in helping Ukraine successfully stabilize its economy amid previous Russian aggression.