WASHIINGTON —On Monday, United States Agency for International Development Administrator Samantha Power signed a financial guarantee supporting the U.S. government’s $20 billion Extraordinary Revenue Acceleration (ERA) loan to the Government of Ukraine, according to a statement from Power's office.
(click below to watch White House statement on the loan)
This effort is part of the G7 commitment to bring forward $50 billion in total financing under the ERA loan initiative to address critical and immediate financing needs for Ukraine in its continuing fight against Russia’s illegal invasion.
The proceeds of this loan were to be transferred Tuesday to the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund, which will serve as trustee and administrator for the distribution of loan contributions to Ukraine from the United States.
The $20 billion U.S. ERA loan will provide immediate support to Ukraine and will be serviced and repaid by future flows of extraordinary revenues stemming from Russian sovereign assets immobilized in the European Union. These windfall proceeds will repay ERA lenders like the United States to provide assistance to Ukraine while minimizing the burden on U.S. taxpayers. This loan will leverage windfall proceeds earned from immobilized Russian sovereign assets to pay for the damage Russia has caused.
The Biden-Harris Administration aims to place Ukraine in the strongest possible position and will continue to take meaningful steps to help Ukraine fight for the future it deserves.