Sweden offers Ukraine $100 million bilateral loan

STOCKHOLM (Reuters) - Sweden has offered Ukraine a bilateral loan of $100 million (66.5 million pounds) to help shore up its finances, the Swedish government said on Wednesday.

Sweden's Prime Minister Stefan Lofven is in Kiev to discuss and sign two cooperation agreements with Ukrainian President Petro Poroshenko and Prime Minister Arseny Yatseniuk.

"Ukraine is in a very vulnerable situation. The Russian aggression in the East and the infighting going on for the past year has added to an already difficult economic crisis," Sweden's government said in a press release.

"This loan, together with our political support ... helps to strengthen Ukraine."

Sweden is hopeful the loan can be paid at the beginning of 2016.

The Swedish government has also renewed a previous agreement with Ukraine to give 220 million Swedish crowns (17.3 million pounds) per year to 2020 in aid.

Sweden has previously offered similar loans to Ireland Iceland and Latvia.

(Reporting by Johan Ahlander; editing by Ralph Boulton)