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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of December 6, 2024 No. 1388

About approval of the Main conditions of implementation of the transaction with contingent obligations as a result of which the state is granted loan from Federal Financing Bank

According to the paragraph the second Item 35-1 of the Section VI "Final and transitional provisions" of the Budget code of Ukraine the Cabinet of Ministers of Ukraine decides:

1. Approve the Main conditions of implementation of the transaction with contingent obligations owing to which the loan from the enclosed Federal Financing Bank is provided to the state.

2. To the Ministry of Finance by results of implementation of the transaction with contingent obligations as a result of which the state is granted loan from Federal Financing Bank, to submit to the Cabinet of Ministers of Ukraine in accordance with the established procedure proposals on need of introduction (with respect for balance of indicators of the government budget) changes in list of the Government budget of Ukraine for the corresponding budget period and determination of type of receipt of the government budget from implementation of such transactions according to budget classification.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of December 6, 2024 No. 1388

The main conditions implementation of the transaction with contingent obligations as a result of which the state is granted loan from Federal Financing Bank

1. The transaction with contingent obligations (further - the transaction) is performed by the conclusion of the purchase agreement of the certificate (Certificate Purchase Agreement) between Ukraine on behalf of the Minister of Finance of Ukraine as the borrower, Federal Financing Bank and Agency on the international development of the United States of America (USAID) (further - AMR of the USA), contracts of guarantee and repayment of loan (Loan Guarantee and Repayment Agreement) between Ukraine on behalf of the Minister of Finance of Ukraine as the borrower and AMR of the USA, and also release by Ukraine on behalf of the Minister of Finance of Ukraine as the borrower of the certificate on debt (Certificate of Indebtedness), the debt on which is subject to payment of Federal Financing Bank.

2. As a result of transaction the state is granted loan for the total amount which is not exceeding 20000000000 US dollars from Federal Financing Bank.

3. Payment obligations according to the certificate on debt (Certificate of Indebtedness) are provided with guarantee of AMR of the USA according to the agreement of guarantee and repayment of loan (Loan Guarantee and Repayment Agreement).

4. On I will borrow means are provided by transfer to the Fund of financial intermediation for assistance to attraction of resources for investment into strengthening of Ukraine (Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund) founded by the World Bank on October 10, 2024 (further - Fund), for benefit of the state. Means from Fund are provided to the state in accordance with the terms of the purchase agreement of the certificate (Certificate Purchase Agreement), documents FIF Documents (as this term is determined in the purchase agreement of the certificate (Certificate Purchase Agreement) and other documents connected with implementation of the transaction.

5. On loan amount percent on the rate equal to the amount of fixed rate in the amount of 1, of annual interest rate and current bid of average yield on outstanding bills of exchange of United States Treasury of America with repayment period 52 weeks determined by the Minister of Finance of the United States of America are charged.

Percent are paid annually till August 31 inclusive, since 2025, in accordance with the terms of the certificate on debt (Certificate of Indebtedness), namely by payment in cash and/or by increase in outstanding main loan amount.

6. Repayment and servicing of loan are performed at the expense of sources of others, than the government budget, including for the income account, the refrigerated assets of the Russian Federation received from, according to the mechanism of credit cooperation for Ukraine, certain Regulations (EU) 2024/2773 European Parliament and the Council of the European Union of October 24, 2024, the Agreement between Ukraine and the European Union on implementation of the mechanism of credit cooperation for Ukraine, the certificate on debt (Certificate of Indebtedness) and the agreement of guarantee and repayment of loan (Loan Guarantee and Repayment Agreement).

In the cases provided by the certificate on debt (Certificate of Indebtedness) and the agreement of guarantee and repayment of loan (Loan Guarantee and Repayment Agreement), Federal Financing Bank or AMR of the USA have the limited right to require loan repayment at the expense of means of the government budget, in particular in case of implementation of compensation (compensation) in the government budget of the damage caused as a result of the armed aggression of the Russian Federation against Ukraine.

7. Final repayment of loan is performed in 40 years of date of issue of the certificate on debt (Certificate of Indebtedness).

8. Other conditions of implementation of the transaction are determined by the purchase agreement of the certificate (Certificate Purchase Agreement), the certificate by debt (Certificate of Indebtedness), the agreement of guarantee and repayment of loan (Loan Guarantee and Repayment Agreement) and other documents connected with its implementation.

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