Canada disburses $450 million in loans to Ukraine
News release
Latest disbursement brings total lending to Ukraine to $1.95 billion this year
August 17, 2022 - Ottawa, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the disbursement of $450 million in loans to Ukraine to support the purchase of necessary heating fuel before winter. With today’s disbursement, Canada has now disbursed the complete $1.95 billion in loans it has committed so far this year to support Ukraine in the face of Russia’s brutal invasion.
Today’s disbursement through the International Monetary Fund’s (IMF) Multi-Donor Administered Account for Ukraine fulfilled two separate commitments. The Deputy Prime Minister announced a $250 million loan to Ukraine, to be provided through the IMF Administered Account, during the G7 Finance Ministers and Central Bank Governors Meeting held from May 18-20, 2022. The Prime Minister announced an additional $200 million loan to Ukraine, also to be channeled through the IMF Administered Account, during the G7 Leaders’ Summit from June 26-28, 2022. Together, these two commitments represent $450 million in new loans to support Ukraine.
Canada played a leading role in the establishment of the IMF Administered Account, which is assisting Ukraine in meeting its balance of payments and budgetary needs, and in stabilizing the country’s economy despite Russia’s ongoing invasion. Canada sees the Administered Account as the best option for distributing funds to Ukraine in a safe, effective, and efficient manner, with the ability to maximize support by pooling funding from international partners and allies.
Quotes
“Canadians are firmly committed to supporting the government and people of Ukraine in their fight against Vladimir Putin’s illegal and barbaric invasion. With today’s disbursement of $450 million in loans—which will help Ukraine purchase the heating fuel it needs before winter—we have now disbursed all loans to Ukraine committed to date. It is Canada’s strong conviction that Ukraine must win this war to defend its sovereignty, democracy, and the rules-based international order.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick facts
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Canada has committed a total of $3.4 billion in assistance to Ukraine so far this year, including $1.95 billion in loans to help meet Ukraine’s urgent balance of payments needs and support its macroeconomic stability.
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Following today’s disbursement, Canada has now disbursed the complete $1.95 billion in loans it has committed so far this year in support of Ukraine:
- $450 million was disbursed today through the IMF Administered Account for Ukraine;
- $1 billion was disbursed on June 9, 2022, also through the IMF Administered Account for Ukraine; and,
- A $500 million bilateral sovereign loan was fully disbursed in two tranches ($300 million on April 20, 2022, and $200 million on May 6, 2022).
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On July 20, 2022, Canada and other official creditors to Ukraine announced their intention to provide a coordinated suspension of debt service due by Ukraine from August 1, 2022, until end-2023, with the possibility of an additional year extension.
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Contacts
Media may contact:
Adrienne Vaupshas
Press Secretary
Office of the Deputy Prime Minister and Minister of Finance
Adrienne.Vaupshas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
financepublic-financepublique@fin.gc.ca
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