The Ukrainian government said Friday it has borrowed about US$300 million from Japan to support economic reforms in the East European country.

The 20-year loan with a six-year grace period, which is provided by Japan International Cooperation Agency, carries an annual interest rate of 1 percent, the government said on its website.

Commenting on the funding, Ukrainian Finance Minister Natalie Jaresko said it is aimed at improving efficiency and transparency of the public sector, deregulating the economy and creating a better business environment in the country.

In particular, the credit will be used to strengthen the fight against corruption and carry out the utility sector reform, which will cut Ukraine's high energy subsidies and spur the country's finances.

The loan is part of a larger financing package of US$40 billion in international aid to Ukraine for a series of structural reforms in the energy, financial, banking and administrative sectors within the next four years.

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