Ukreximbank provided UAH 5.081 billion to the State Road Service (Ukravtodor) as the second tranche of a loan for rehabilitation of Ukrainian roads on June 23. The interest rate on the two-year loan tranche was lowered from 10.5% to 9.99% per annum.

This was announced by the bank’s Board Chairman Yevhen Metzger, the CFTS portal reports, citing the Interfax Ukraine news agency.

“Ukreximbank has granted Ukravtodor a second loan tranche of UAH 5.081 billion. It managed to provide the loan tranche to the state agency on terms that are even more attractive: the interest rate on the second tranche was … lowered to 9.99% per annum compared with the base rate and the period of the tranche increased to two years," he said.

As reported, Ukreximbank and Ukravtodor signed an agreement on provision of UAH 5.782 billion as the first tranche of a loan of UAH 19.3 billion for upgrading roads in Ukraine on April 30. In accordance with the National Bank of Ukraine’s decision to lower its discount rate, to which the Ukravtodor loan is pegged, the interest rate was set at 10.5%. In addition, the loan was provided in hryvnia, which minimizes currency risks.

Ukreximbank is 100% owned by the state.