Today, on June 3, 2020, the Cabinet of Ministers of Ukraine, represented by Deputy Prime Minister Oleksii Reznikov and the Government of the Federal Republic of Germany, represented by Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Ukraine Anka Feldhuzen, have signed an Agreement on cooperation within the framework of the Project "Housing for internally displaced persons"
According to the Agreement, a sum worth EUR 25.5 million will be allocated for the implementation of the Project "Housing for internally displaced persons". The aim of the Project is to provide accommodation for Ukrainian citizens who were forced to leave their homes as a result of the armed aggression of the Russian Federation.
The next step will be the ratification of this inter-governmental agreement by the Verkhovna Rada of Ukraine.
The next stages are preparation for the conclusion of a funding agreement between KfW and the Ministry for Reintegration of TOT of Ukraine. The procedure and conditions for the provision of funds, the procedure for their use, mechanisms to attract financial institutions, responsibility for improper fulfilment of the agreement will be determined by this funding agreement. Concurrently, KfW will select a financial institution to be the Project implementation partner, which will develop and implement a bank loan product, and the Ministry for Reintegration will develop the procedure for using the funds according to the Project implementation mechanism. Aforementioned Procedure shall be approved by the Cabinet of Ministers of Ukraine.
Provisionally, it is assumed that IDPs will be eligible to obtain a loan of up to EUR 20 000 for the period of up to 10 years on preferential terms (3-5%) based on a norm of 21 square meters per 1 person of a total area + 10.5 square meters per family.
“The support of our foreign partners, especially in issues related to the armed aggression of the Russian Federation, is essential for us, we highly appreciate it. We are also undertaking all possible efforts to ensure that in the budget of Ukraine there will be funds provided to support our citizens who were forced to leave their homes in Donetsk and Luhansk Oblasts, and in Crimea as a result of the aggression of the Russian Federation. I wish to recall that following the results of the budget sequestration, we have preserved a sum worth UAH 20 million for co-financing of the purchase of housing for IDPs and UAH 20 million for compensation for the housing destroyed as a result of the armed aggression of the Russian Federation,” emphasized Deputy Prime Minister Oleksii Reznikov.
Let us recall, that on April 22, the Cabinet of Ministers of Ukraine has approved an agreement with the Government of the Federal Republic of Germany on cooperation in the framework of the implementation of the Project "Housing for internally displaced persons".