January 27, 2023 11:09
Korea is to provide soft loans to Ukraine under a new development initiative this year for the rebuilding of infrastructure after the Russian invasion.
The financial authorities of Korea and Ukraine will decide the details once they sign an agreement, a Finance Ministry official said. "We expect that the project will focus on restoring or rebuilding infrastructure there."
The plan is part of a new loan program worth W11.7 trillion for developing countries from the Economic Development Cooperation Fund (US$1=W1,231). Some W5 trillion will be provided by 2025.
Korea aims to become one of the world's top 10 contributors to global development aid projects. It was the 15th-largest contributor in 2021.
Finance Minister Choo Kyung-ho on Thursday said, "We're going to help the economic growth of developing countries by expanding the size of EDCF loans and support Korean companies' efforts to make inroads into overseas markets."
The fund was launched in 1987 to help developing nations' economic development and strengthen economic cooperation with them. It provides low-interest, long-term loans at annual interest rates of 0.01 to 2.5 percent for up to 40 years through the Export-Import Bank of Korea, while Korean companies participate in development projects.
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