Good afternoon! I will gladly help you understand this resolution.
1. **Essence of the law:**
This Resolution of the Cabinet of Ministers of Ukraine approves the main conditions for attracting a state external borrowing in the form of a consortium loan from Citibank N.A. (London Branch). The loan is provided to finance the purchase of defense materials, equipment and hardware. The resolution defines the main parameters of the loan, such as amount, interest rate, repayment term and security.
2. **Structure and main provisions:**
The resolution consists of two parts: directly the resolution and the Main Conditions for Implementing State External Borrowings approved by it.
* The resolution contains a general provision on the approval of the Main Conditions and instructs the Ministry of Finance to provide funds for the repayment and servicing of the loan in the State Budget of Ukraine.
* The Main Conditions define:
* Loan amount (up to GBP 1.672 billion).
* Lenders and their roles (Citibank N.A. and a possible consortium).
* Purpose of the loan (financing the purchase of defense materials).
* Interest rate (SONIA + 0.69% per annum).
* Repayment term (19 years, including the grace period).
* Security (guarantee of the UK Export Finance Agency).
* Source of repayment and servicing of the loan (funds from the State Budget of Ukraine).
3. **Main provisions for use:**
The most important provisions for use are:
* Purpose of the loan: the funds can be used exclusively for the purchase of defense materials, equipment and hardware, as well as for the transfer of technology or licensing in the field of defense.
* Interest rate: it is floating and depends on the SONIA index, which requires constant monitoring to forecast the costs of servicing the loan.
* Guarantee of the UK Export Finance Agency: the existence of a guarantee ensures the reliability of the borrowing, but involves the payment of a support fee, which must also be taken into account when planning the budget.
* Source of repayment: repayment and servicing of the loan is carried out at the expense of the State Budget of Ukraine, which requires careful planning and ensuring the availability of the necessary funds.
: The act relates to the military sphere.
