The Council of the European Union (EU) formally adopted this Tuesday an additional support of five billion euros in macro-financial assistance to Ukraine, as a matter of urgency, to help the country’s economic recovery and stabilization.
In a statement released this Tuesday, the Council of the EU – the structure in which the Member States are represented – subsequently gave an account of this formal adoption, explaining that “this financial aid complements other aid from the EU to Ukraine in the fields humanitarian, development and, customs and defense”.
Tuesday’s final endorsement comes 11 days after EU finance ministers expressed support for this additional €5 billion in assistance to Ukraine at an informal meeting in Prague.
According to the Council, the additional amount of up to EUR 5 billion of exceptional EU macro-financial assistance under this decision is intended to support the macro-financial stabilization of Ukraine, strengthen the country’s immediate resilience and sustain its resilience, thereby contributing the sustainability of Ukraine’s public debt and its ability to subsequently repay its financial obligations.
The support now granted takes the form of long-term loans under very favorable conditions, the second phase of the execution of the Union’s exceptional macro-financial assistance to Ukraine, for a maximum amount of 9,000 million euros, announced by the European Commission on last May and approved at the European Council in June.
This Tuesday’s decision of the Member States also allows the EU budget to be provided with the necessary means to absorb the risk of losses of these additional loans, as well as the loan of 1,000 million euros, adopted in mid-July and also disbursed . in two installments.
The new MFA operation is part of the international effort of bilateral donors and international financial institutions to support Ukraine at this critical time.
The Russian invasion of Ukraine last February caused the loss of market access and a drastic drop in Ukrainian public revenue, while public spending to deal with the humanitarian situation and maintain the continuity of Ukrainian state services has increased considerably.
Source: TSF
