The Ukrainian Cabinet of Ministers has adopted a resolution setting the conditions under which the State Road Agency (Ukravtodor) can obtain credit funds.
Infrastructure Minister Vladyslav Kryklyi announced this in his Telegram channel, the CFTS portal reports.
According to Kryklyi, the loan funds will be used to finance work on 100 road construction projects, the list of which has been approved by the government.
“State-guaranteed interest-bearing bonds will be issued without a public offer. The terms: a face value of UAH 1,000 per bond; a bond yield rate of 12.5% per annum, which will be paid quarterly; a maturity of 1-5 years, depending on the series. The bonds are expected to be issued in five series," the minister said.
Kryklyi added that this would allow rehabilitation of roads, create jobs, and stimulate contractors.
According to Ukravtodor’s head Oleksandr Kubrakov, raising funds for construction of roads is one way of supporting businesses.
"Money is being directed to the real sector of the economy. Thanks to today's decision by the Cabinet of Ministers, Ukravtodor is continuing Big Construction while complying with quarantine requirements," Kubrakov said.
As the CFTS reported, Ukravtodor intends to borrow about UAH 19.3 billion from Ukrainian banks.