(QHA) -

China is to loan Ukraine $15bn over the next 15 years, to aid in the development and construction of affordable housing, according to Ukraine's Ministry of Regional Development, Sharecast reports.

The loan will feature a minimal interest rate with a possible extension, as part of Ukraine's $1 billion pilot project to form a social housing fund dedicated to building affordable housing and improving infrastructure.

Earlier in March head of Ukraine’s Ministry of Regional Development Gennady Zubko said the country was in talks with China over attracting investment to implement a program of renting real estate with an option of further acquisition. The amount of investment and the terms wasn’t specified.

Financial arrangements with China traditionally require the fulfillment of a number of conditions, such as involving a workforce and technology from China.

In spring 2011 Ukraine and the Export-Import Bank of China signed an agreement to build a high-speed railway line between Kiev and Borispol International Airport, as well as the $2 billion of infrastructure projects in the Kiev region.

Construction hasn’t begun, as not all the terms of the financing have been agreed.

QHA