This would be a loan whose interest would be borne by EU members. Ukraine is expected to repay the capital from 2033.
Article written by
Posted
Update
Reading time : 1 min.
The European Commission has proposed to the Twenty-Seven to grant Ukraine aid of 18 billion euros in 2023, in the form of loans whose interest would be borne by the Member States. “This stable, regular and predictable financial assistance, averaging €1.5 billion per month, will cover a significant part of Ukraine’s short-term financing needs for 2023, which the Ukrainian authorities and the Fund international monetary institutions estimate to be 3 to 4 billion euros per month”explains the European executive in a press release (in English).
>> Follow the latest news on the war in Ukraine in our live
Loans are provided for a maximum period of 35 years. Ukraine should repay the capital from 2033. The funds made available to Ukraine would be borrowed by the European Commission on the markets. The payment must be accompanied by reforms in the judiciary and the fight against corruption in particular, and respect for the rule of law. The Commission undertakes to “verify that these reforms have actually been put in place when making the payment”.
The proposed aid will ensure “that the Ukrainian state continues to function, that citizens can benefit from essential public services and that the infrastructure destroyed by Russia can be rebuilt”, said the president of the European executive, Ursula von der Leyen. The Commission hopes that this proposal will be adopted by the Council (Member States) and the European Parliament by the end of the year so that the first funds can be paid from January 2023.
In 2022, the EU granted aid of some 6 billion euros to this country, which has the status of a candidate for membership. With Ukraine’s economy devastated by nearly nine months of Russian offensive, the IMF predicts a 35% GDP recession for Ukraine in 2022.