The bailout money will be spent on reformation of social security system
On July 9, 2014 Ukraine signed an agreement with the International Bank for Reconstruction & Development for loan issue, which amount totals $300 million to be disbursed under the project titled Update of Social Support System for Citizens of Ukraine, the press-office of the Ministry of Finance reports.
The loan will be given for 18 years with a 5-year grace period. The interest rate is up to 1%.
The goal of raising the money by Ukraine is to expand the subsistence allowance program providing a financial aid to the most vulnerable and less protected social groups.
The project duration is 6 years; it is a part of the Ukraine’s general program supported by the World Bank Group.
