Monetary assistance for Ukraine
Bern, 18.02.2015 - Today, the Federal Council decided that Switzerland will participate under certain conditions in the multilateral aid package for Ukraine. It has instructed the Swiss National Bank (SNB) to negotiate a credit of USD 200 million. The Confederation will give the SNB a guarantee for timely reimbursement and interest payments. The credit is part of an internationally coordinated assistance package to achieve financial stability in the country and is tied to the implementation of an IMF programme.
In close cooperation with the SNB, the Federal Council has decided that Switzerland will participate in the internationally coordinated monetary assistance in favour of Ukraine. It has instructed the SNB to grant Ukraine a credit of USD 200 million. The Confederation will give the SNB a guarantee for timely reimbursement and interest payments.
The credit is part of a broadly-based, coordinated assistance package of the international community to achieve financial stability in Ukraine. The credit is tied to the implementation of the International Monetary Fund's (IMF) programme and may not be used to finance the military budget. The IMF has been providing support to the country since April 2014 with a stand-by arrangement amounting to approximately USD 15.5 billion. Due to recent developments, international monetary assistance for the country will be substantially increased. The IMF programme will be complemented by contributions from bilateral donor countries.
Under the Federal Act on International Monetary Assistance, Switzerland can provide monetary assistance to individual countries and groups of countries to maintain and promote the stability of international monetary and financial relations. The Federal Council coordinates the preparation and implementation of corresponding measures closely with the SNB.
The contribution to the financial stabilisation of Ukraine is part of Switzerland's long-standing tradition of monetary assistance. As an open economy with a financial sector that is well-integrated internationally, rapid stabilisation in Ukraine is also in Switzerland's interests. A Ukrainian default would inevitably impact neighbouring countries as well as the broader region.
Address for enquiries
Mario Tuor, Head of Communications, State Secretariat for International Financial Matters SIF
Tel. +41 58 462 46 16, mario.tuor@sif.admin.ch
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Finance
https://www.efd.admin.ch/efd/en/home.html
