The European Commission’s decision is part of the G7 initiative (not an alternative) to the mechanism of additional loans to increase the budget revenues of Ukraine.
Repayment of the EU debt of 35 billion euros will take place only at the expense of future income from fixed sovereign assets of the Russian Federation in the EU. Yes, it is expected that all MFA funds for Ukraine are non-refundable. Internal financial resources will not be used for payment. This was reported by the press service of the Ministry of Finance on Friday, September 20.
During her visit to Kyiv, European Commission President Ursula von der Leyen announced a proposal to provide Ukraine with macro-financial assistance (MFA) of up to 35 billion euros for 2024-2025.
The proposal will enter into force after the consideration and support of the European Parliament and the Council of the EU. The Ministry of Finance expects the funds to be available in the coming months.
The department emphasized that it is proposed to create a credit cooperation mechanism in Ukraine (Ukraine Loan Cooperation Mechanism, ULCM), which will provide a non-refundable form of macro-financial assistance.
Macro-financial assistance is not tied to specific costs, but at the same time it will provide for urgent needs.
The decision of the European Commission is part of the G7 initiative (not an alternative) on the mechanism of additional loans to increase the revenues of the budget of Ukraine (Extraordinary Revenue Acceleration Loans for Ukraine), the finance department clarified.
In turn, the European Commission published a document on Friday explaining that the payment of the EU tranche of macro-financial assistance to Ukraine up to 35 billion euros within the framework of loans to the G7 up to 45 billion euros is expected to last until to a maximum. of 40 years.
“The funds will be provided in the form of a highly concessional loan, which can be obtained as early as 2024, with repayment in regular tranches until the end of 2025. The loan will be repaid within a maximum period of 40 year,” the document said.
The EC document also states that “the macro-financial assistance instrument was chosen for the EU loan because it offers high flexibility and favorable terms for Ukraine, taking into account the current situation in the country and guaranteeing swift action to support the Ukrainian people.”
Let’s remember that President Vladimir Zelensky previously announced that Ukraine plans to allocate 35 billion euros from the European Union to the energy and security sectors.
It was learned that the European Union will give Ukraine a loan of up to 35 billion euros. Billions will be allocated as part of the commitments of the G7 countries.
Source: korrespondent
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