Ukraine Unveils Details of Long-Term Loan Within the $60 Billion US Aid Package

The Ukrainian Cabinet of Ministers has approved the text of the agreement of the US financial aid to Ukraine’s budget, part of a larger support package exceeding $60 billion.

The agreement outlines US economic aid exceeding $9.4 billion, allocated through several programs:

• Up to $7.849 billion will come from the Economic Support Funds (ESF) and be directed to Ukraine’s state budget.

• Up to $50 million will be allocated to prevent and address food insecurity issues. The recipient countries will be determined later.

$7.899 billion of this aid was already foreseen in the US law “On Additional Appropriations for the Security of Ukraine for 2024” (USSAA), signed by President Biden on April 24, 2024.

The agreement details the terms of the US financial aid, which will be provided as an interest-free, inflation-protected loan. The Ukrainian government is obligated to repay the loan within a specified timeframe.

A single lump sum payment in US dollars is due 40 years after September 30, 2025 (by September 30, 2065). Meanwhile, the US President has the authority to forgive a portion or all of the loan. Up to 50% of the loan can be forgiven after November 15, 2024. The entire remaining balance can be canceled by the President any time after January 1, 2026.

Earlier, On April 23, the Senate finally passed a legislative package allocating nearly $61 billion in additional military and economic aid to Ukraine, along with assistance to other US allies.