The European Union (EU) will transfer €3.2 billion in macro-financial assistance to Ukraine in mid-June. According to the Kyivpost, this is the first payment under a €90 billion loan that the EU approved in April. The disbursement is conditional on Ukraine ratifying the agreement and implementing agreed reforms.
EU Economic Commissioner Valdis Dombrovskis told reporters: “We will disburse the first MFA tranche around mid-June: €3.2 billion.” He added that the payment depends on Ukraine swiftly ratifying the corresponding agreement. The EU approved the loan in April after months of wrangling with Hungary, which had previously vetoed it.
The package is expected to cover most of Kyiv’s financing needs. Of the €90 billion, around €60 billion is earmarked for arms purchases to defend against Russia’s war of aggression. The remainder is for reconstruction and supporting the Ukrainian government amid the balance-of-payments crisis caused by the war – including the macro-financial assistance.
Further disbursements for budget support and military spending are still being finalized. The European Commission and Kyiv have previously agreed on the conditions for the macro-financial assistance.
Source: www.kyivpost.com
