Author`s name Alex Naumov

Ukraine asks Japan for 5-billion-dollar loan

Japan is considering the possibility of granting 5-billion-dollar loan to Ukraine. According to Bogdan Danilishin, the Minister of Economics of Ukraine, this issue was discussed during the talks between Ukraine’s Prime Minister, Japan’s Finance Minister Kaoru Yosano and Japan's Prime Minister Taro Aso.

He also said Tymoshenko told Kaoru Yosano that Kiev hopes to deepen economic ties with Japan, which has a competitive edge over high-tech industries and energy conservation areas.

This week Japan is likely to send its experts to Ukraine to define the terms of the loan.

"We have an agreement that this credit can be given on even more favorable conditions than IMF’s conditions," Bogdan Danilishin said.

At the same time Yulia Tymoshenko dismissed reports that the country had taken on a begging role in negotiations with other countries and international organizations amid the current financial crisis.

"I would like to refute statements that Ukraine has taken on the role of a beggar," the premier told journalists on return from a visit to Japan, adding "Ukraine and Japan are building cooperation. There is no begging here."

Ukraine has been hit hard by the global economic crisis with its currency, the hryvnia, depreciating 50% since September.

Kiev received the first installment of $4.5 billion as part of a $16.43 billion IMF loan in November 2008, however, further payments have been delayed over the country's inability to prove to the IMF that Kiev is capable of reducing its budget deficit, reports.

Earlier it was reported that Ukraine had applied to Russia for a $5 billion loan to pay for natural gas deliveries.