The EU has agreed to provide EUR 500 million of macro-financial assistance to Ukraine

ЕС согласовал предоставление 500 млн евро макрофинансовой помощи Украине

The European Commission on behalf of the European Union agreed on granting Ukraine a loan volume of EUR 500 million within the fourth macro-financial assistance program.

With this tranche, the total amount of macro-financial assistance loans, which the EU granted Ukraine in 2014 amounted to 3.8 billion Euro. This is the largest macro-financial assistance the European Union ever provided the partner country.

“Ukraine has a high priority in the European agenda. We continue to provide political, financial and technical support, especially during the crisis to support the reform agenda in Ukraine and make its economy more sustainable. Ukraine has made all the necessary indicators of reforms in the framework of the fourth programme of macro-financial assistance of the European Union. That’s why we prepare tranche with a volume of EUR 500 million. We will also provide Ukraine 1.2 billion euros of extra macro-financial assistance in the framework of assistance to our neighboring countries in the fight against the negative effects of the pandemic coronavirus,” said Executive Vice-President of the European Commission for economy that works for people Valdis Dombrovskis.

“The loan volume of 500 million euros is another proof of our determination to actively support Ukraine and its people in these difficult times. We will also provide Ukraine with extra support within a large aid package of ten neighboring countries in times of crisis caused by the pandemic. This crisis knows no boundaries, and as European solidarity is not limited to the borders of the European Union”, – said the European Commissioner for economic Affairs Paolo Gentiloni.

Providing second and last tranche of macro-financial assistance became possible after Ukraine has fulfilled the twelve political events agreed with the EU. These obligations are provided for important steps in such areas as the fight against corruption and money laundering, public Finance management, banking, energy, health, and social policy. Ukraine also perform related activities, is in the final stages on a new agreement stand-by arrangement with the International monetary Fund.

Funds macro-financial assistance will be provided in the form of long-term loans with low interest rates. The first 500 million euros in the framework of the program was provided in December 2018, after Ukraine has fulfilled the necessary political conditions.

Also, the EU provides Ukraine with additional macro-financial assistance in the form of loans volume of EUR 1.2 billion. It is part of the decision on providing macro-financial assistance to the ten partner countries to help them limit the negative economic consequences of a pandemic coronavirus. The European Commission has proposed that by 22 April, the European Parliament and the EU Council adopted the proposal on 20 may. The European Commission is ready to provide the first tranche of this new macro-financial assistance as quickly as possible – once it has concluded a Memorandum of understanding with Ukraine. This Memorandum will identify the necessary policy steps that Ukraine undertakes to implement for the second tranche of aid.