Subvention of UAH 398.5 mln under emergency program to restore Ukraine transferred to 2016

The Ukrainian government has agreed the redirection of a part of the funds under the program entitled "The Implementation of the Emergency Credit Program of Ukraine" for 2015 worth UAH 398.5 million from the special fund of the national budget in the form of inter-budget transfers to finance projects as part of the EBRD-funded Emergency Credit Program to Restore Ukraine.

Cabinet resolution No. 1068 of November 25 has been posted on the government's website.

According to the document, the resolution took effect from the day of its publication, except for the procedure and conditions of the provision of the subvention that take effect only when the 2016 budget is passed.

Thus, the government accepted the proposal of the Regional Development, Construction, Housing and Utilities Economy Ministry as the key manager of the funds under these programs.

According to the procedure, local authorities select companies that order the projects. They act as executive managers of the funds.

The subvention from the EIB funds is provided to them under applications in accordance with the financial agreement signed by the EIB and Ukraine on December 22, 2014.

According to the conditions of the financial agreement, the credit funds are provided by the EIB to overcome consequences of the conflict in the east of Ukraine.

These are loans to restore infrastructure and carry out measures in the social area in Donetsk and Luhansk regions, as well as adjacent Kharkiv, Dnipropetrovsk and Zaporizhia regions.

In 2015-2017, it is planned to finance the projects via the subvention from the national budget to local budgets in the amount of UAH 707.274 million.