Yellen Optimistic on $50 Billion Ukraine Loan by October

U.S. Treasury Secretary Janet Yellen expressed optimism over the approval of a $50 billion loan for Ukraine by October. The loan, backed by frozen Russian assets, was agreed upon in principle by G7 leaders in June and is designed to support Ukraine against ongoing Russian aggression. Talks are ongoing to ensure long-term asset freezes necessary for loan repayment.

U.S. Treasury Secretary Janet Yellen expressed confidence on Friday that the Group of Seven (G7) wealthy democracies could finalize the terms of a $50 billion loan to Ukraine, backed by Russian assets, by October. Yellen's remarks came on the sidelines of a G20 finance leaders meeting in Brazil, where she described discussions as 'constructive.'

'I think things look good in terms of getting to a place where we can get this done probably by October,' Yellen said. The loan, initially agreed in principle by G7 leaders in June, would be secured by approximately $300 billion of Russian central bank assets frozen in the West following Moscow's 2022 invasion of Ukraine.

Despite some disagreement within the G7 on fully confiscating the frozen assets, there is consensus that it is legally permissible to use the profits generated by these assets to service the loan. Yellen emphasized the need for long-term asset freezes to ensure loan repayment stability and address U.S. budget scoring concerns.

(With inputs from agencies.)