Loading grant details…
Chinese credit institutions expected to provide a $15 billion USD loan for housing projects
| Funder | Unspecified Chinese State-owned Bank |
|---|---|
| Recipient Organization | Ukrainian Ministry of Communities and Territories Development |
| Country | Ukraine |
| Start Date | Dec 03, 2013 |
| End Date | Apr 29, 2028 |
| Duration | 5,261 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 42574 |
Grant Description
Chinese credit institutions expected to provide a $15 billion USD loan for housing projects Between December 3 to 6, 2013, during then-President of Ukraine Viktor Yanukovych’s visit to China, CITIC Construction and the State Mortgage Institution of Ukraine signed a memorandum under which China would provide a 15-year $15 billion USD (€10.9 billion EUR) loan for the construction of affordable housing.
Then, on March 26, 2015, CITIC Construction Co., Ltd., a subsidiary of CITIC Group, and the Ukraine Ministry of Regional Development signed another memorandum of understanding (MOU) for the financing and implementation of housing projects in Ukraine.
Under this MOU, the Chinese credit institutions pledged to provide a $15 billion USD loan at a "minimum" interest rate for 15-years with the option to extend.
The MoU intended to see development of Ukraine's state housing entities, the construction of affordable housing, the creation of a social housing fund, the creation of youth housing, the provision of loans to rural developers, and the implementation of infrastructure projects.
CITIC Construction would be responsible for project implementation, while Ukraine's Ministry of Regional Development would prepare and develop the project. Under this MoU, Ukraine would begin by implementing a pilot investment project worth up to $1 billion USD.
In August 2016, China and Ukraine discussed the implementation of the MoU, which the "Chinese side positively evaluated the pace of". As of July 2022, there is no evidence that this MoU ever led to a committed loan or implementation.
In March 2015, an article on pro-Russia military news site "Military Review" called the MoU an example of the Government of Ukraine's "wishful thinking" as the MoU did not assure financing, and to secure it, Ukraine would need to provide "special guarantees" to entice Beijing, when Ukraine had allegedly not fulfilled these "guarantees" to China (and Russia) in other circumstances.
Sources & References
- Ukraine to receive $30 bln in Chinese investment - Boiko, China to invest $15bn in Ukraine housing
- China to invest $ 15 bln in affordable housing in Ukraine
- The Chinese People’s Republic Investment Engagement in Belarus and Ukraine after 2010
- China loans Ukraine $15bn for social housing programme
- Ukraine housing to receive $15bn loan from China
- Financial Reports
- Ukraine Conflict Benefits China
- Hennadii Zubko: Ukraine is preparing an investment proposal for China to cooperate in housing construction and mortgage lending
- Hennadii Zubko: Government expects that the China Trade Association will become an effective tool for attracting investments into Ukrainian economy
- USD 15 billion loan for affordable housing from China
- Ukraine opens new era in relations with China
- CHINA READY TO INVEST $15 BLN IN UKRAINIAN MORTGAGE MARKET
- CHINA TO INVEST $ 15 BLN IN AFFORDABLE HOUSING IN UKRAINE, Киев выдал желаемое за действительное, заявив, что Китай собирается инвестировать 15 млрд. долларов в строительную отрасль страны Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Ukrainian Ministry of Communities and Territories Development
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
