19 minutes agoUS transfers $20 billion of loan to Ukraine
Periskopi(2 years ago)
(2 years ago)The U.S. Treasury Department announced on Tuesday that it has transferred the $20 billion share of a $50 billion loan to Ukraine to a World Bank middle fund for economic and financial aid to the war-torn country. The Treasury Department said the deportation fulfills the vow taken [...]
The Treasury Department said the disbursement meets the pledge taken in October to double the European Union's commitment to provide $20 billion in aid, provided by the frozen Russian accounts. It is also contributing to smaller loans from Britain, Canada, and Japan.
Release before the inauguration of President-elect Donald Trump in January is aimed at protecting these funds from a possible return from the new administration. President-elect Trump has complained that the United States is giving excessive assistance to Ukraine and has said it will end the war quickly, without specifying how.
The $50 billion loan for 30 years will be enabled with interest revenues from about $300 billion in Russian accounts, which remain frozen since Russia's attack on Ukraine in February 2022. G7 democratic countries had discussed this plan for months and agreed on conditions in October, prior to Trump's election, writes Zeriamerica.
President Joe Biden's administration initially sought to cut off a $20 billion loan by $10 billion to be used for military aid and $10 billion for economic assistance, but for the military, it would require approval from Congress, a process made more difficult by the republican's broad victory in elections. With Tuesday's transfer, the total amount will be dedicated to non-military goals.
The US Treasury Department said the amount was transferred to a new World Bank fund, “FO RTIS Ukrainian FIF” The Steering Board approved the establishment of the fund in October, with only one country opposed, Russia.
The World Bank, whose statute prevents it from dealing with military aid, had managed a similar humanitarian and economic fund for Afghanistan.
US Treasury Secretary Janet Yellen personally supervised employees who made up the $20 billion bank transfer to the World Bank fund, a department official said.
These funds, paid for by revenues from Russia's frozen accounts, will give Ukraine a vital impulse of support, while being protected by an unprotested aggression fight”, Secretary Yelen said in a statement.
The <x0.50 billion dollars collectively provided by G7 through this initiative will help Ukraine have the resources it needs to support emergency services, hospitals and other foundations of its bold resistance”, she added.
The empowerment of the US dollar, since the 5 November election victory by President-elect Trump, has slightly reduced the estimated dollar loan. According to a G7 loan mirror, the EU will provide $19.1 billion, Canada $3.52 billion, Britain $2.88 billion, and Japan $3.11 billion.
