March 13, 2014 Ottawa Prime Minister’s Office
Introduction
Prime Minister Stephen Harper today announced additional support to help Ukraine restore economic, social and political
stability during this important period of transition.
The support will help the new Government of Ukraine stabilize its economy and deliver programming consistent with Canadian development priorities. It will also ensure that the Government of Ukraine receives the expert guidance and advisory support it needs to manage its economic transition, and will help enhance the capacity of the National Bank of Ukraine to undertake banking and financial sector reforms.
The support announced today is one of several measures that our Government is taking in concert with the international community to help address the current crisis in Ukraine. Any financial support provided by Canada will include the necessary safeguards and conditions to ensure accountability and transparency around the use of those funds.
Quick Facts
New support announced today will be provided in the form of a loan or loan guarantee, conditional on a broader package that includes International Monetary Fund (IMF) support for Ukraine. Additional support will assist the IMF in delivering technical assistance to help Ukraine manage its economic transition and financial sector reforms.Canada has already provided funding for urgent medical assistance for Ukrainian activists.Canada, along with a number of other member countries of the Organization for Security and Co-operation in Europe (OSCE), is currently part of a military observer mission that will report on military activities in Ukraine.On March 5, 2014, at the request of the Prosecutor General of Ukraine, Canada froze the assets of members of the Yanukovych regime. As a result, Canada listed 18 people under the Freezing Assets of Corrupt Foreign Officials Act (Ukraine).In addition, Canada has imposed a travel ban against a number of individuals responsible for threatening the territorial integrity and sovereignty of Ukraine. The ban will prevent these individuals from travelling to Canada.
Quote
“Canada strongly supports the will of the Ukrainian people who have spoken out courageously in calling for a free and democratic Ukraine. Supporting the restoration of economic stability to the country is a priority for both Canada and our international partners. We are proud to announce additional measures today to promote sustainable economic growth, democratic development and good governance during this important transition period.” – Prime Minister Stephen Harper
Backgrounder
SUPPORT FOR ECONOMIC STABILIZATION AND DEVELOPMENT INITIATIVES IN UKRAINE
The Government of Canada is committed to supporting Ukraine during this important period of transition. To this end, on March 13, 2014, Prime Minister Stephen Harper announced more than $220 million in support to help Ukraine stabilize its economy, and promote economic and social development.
More specifically, support will be allocated as follows:
Loan or Loan GuaranteeAmount: $200 million (2014)Implementing partner: Government of Ukraine
Canadian financial support to Ukraine will help the new government stabilize its economy and support programming consistent with Canadian development priorities. This loan or loan guarantee will be conditional on the establishment of a broader package of International Monetary Fund (IMF) support for Ukraine.
Technical Assistance to Strengthen Public Financial Management in UkraineAmount: $20 million (2014)Implementing partner: International Monetary Fund (IMF)
Canadian financial support for technical assistance in Ukraine will ensure that the Government of Ukraine receives the expert guidance and advisory support it needs to manage its economic transition at this difficult time. Ukraine will be able to draw on IMF technical assistance responsively, helping to stabilize and rebuild the economy. This could include support related to monetary policy, public expenditure management, debt management, balance of payments systems, financial sector supervision, and anti-money laundering reforms.
Strengthening the National Bank of UkraineAmount: $900,000 (2014-2015)Implementing partner: International Monetary Fund (IMF)
The project provides technical assistance to enhance the capacity of the National Bank of Ukraine to undertake banking and financial sector reforms. The project is supporting changes that can help ensure greater price stability and lower inflation in Ukraine, and reforms that build the resilience of the Ukrainian economy to adverse external developments – all of which are essential pre-conditions for further small and medium-sized enterprise developments in Ukraine.