The government says the loan will come from Export Development Canada.
The loan agreement includes a provision enabling Canada to audit how the money is used and requires Ukraine to provide regular reports on the spending.
It's the second $200-million loan Canada has extended to the troubled country, which is fighting a Russian-backed rebel movement.
In supporting Ukraine, Canada has imposed a broad range of political and economic sanctions affecting more than 200 Russian and Ukrainian individuals and entities.
Canada has also provided Ukraine with a range of non-lethal security assistance and equipment, as well as training for members of its armed forces.
Prime Minister Stephen Harper has been an outspoken supporter of Ukraine against Russia.
The prime minister visited the country twice last year, while Ukrainian President Petro Poroshenko visited Canada and addressed a joint session of Parliament last September.
"The loan announced today will help promote economic and social stability as the Ukrainian government works to re-build itself into a democratic, independent, and prosperous country, free from aggressors," Harper said in a statement.
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