Ukraine received US$1.5 billion of loan tranche from Export-Import Bank of China, announced the Agriculture Minister Mykola Prysiazhniuk. The Minister added that some part of the money will be used by Ukrainian State Food and Grain Corp. to buy 4 million metric tons of grain from local farmers, including 2 million metric tons on forward basis.
The Food and Grain Corp. is going to make forward contracts from February 15, 2013. It is expected that barley, wheat and corn will be purchased. According to the Ministry of Economy, the Export-Import Bank of China is ready to provide credit at rate of 6-month Libor+4.5% for a term of 15 years with 5 years grace period.
The loan agreement was supposed to be signed in exchange for yearly supply of 3 million metric tons of Ukrainian corn to China.
Source: BlackSeaGrain Feb 2013