The US and Ukraine signed a declaration of intent to cooperate in providing credit guarantees on January 28. The news was revealed by Minister of Finance of Ukraine Natalie Jaresko after a meeting with US Treasury Secretary Jacob J. Lew. “We thank the US government for supporting Ukraine, especially during such a difficult time for us. We appreciate this step of our American partners,” Jaresko stressed. According to her, it will allow Ukraine to more actively implement the reforms it has started and attract international financial support at more favorable conditions.
Secretary Lew, for his part, stressed that the current government of Ukraine was the most reform-minded in the history of independent Ukraine. “The government has managed to achieve macroeconomic stability. It is very important that Ukraine stay on this course,” he said.
Lew stressed that according to the signed declaration, the US stood ready to provide Ukraine with one billion dollars in credit guarantees in the first half of 2015. He added, however, that the funds would be disbursed only if the reforms go on. Another billion dollars may be provided later on if Ukraine stays on the reform course. The secretary emphasized that Ukraine had got a billion dollars in credit guarantees and 340 million in direct aid already in 2014. He also said that the resources provided to Ukraine would help it solve social security issues, including the protection of the most vulnerable groups.
COMMENTARY
Andrii NOVAK, chairperson of the Committee of Economists of Ukraine:
“The statement made by US Secretary Lew is not a compliment for the Ukrainian government alone, but for the entire Ukraine. Meanwhile, the document he has signed is evidence of America’s support for the Ukrainian state which is now facing Russian aggression. This means that the US will continue to be the most important lobbyist for Ukraine’s wartime needs, meaning primarily funding needs.
“Therefore, the US, as well as the IMF, will support Ukraine in this situation in any case – not the government, some politician or political grouping, but the nation as a whole.”
