EU Approves €35 Billion Financial Loan to Ukraine
The Council of the European Union has approved a €35 billion macro-financial assistance to Ukraine, as well as a new mechanism to help Ukraine repay up to €45 billion in loans previously provided by the EU and G7 partners. This is stated in a statement on the EU Council website.
‘The financial assistance aims to provide immediate help to meet Ukraine's urgent financial needs, which have increased due to Russia's increased aggression against Ukraine,’ the press release said.
Repayment of the macro-financial assistance and related bilateral loans from G7 partners under the Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative will be secured by future proceeds from Russia's frozen assets in the EU.
The facility will provide these funds, as well as possible voluntary contributions from EU member states and third countries or other sources, in the form of financial support to Ukraine. This will help Ukraine service and repay the loans.
In order to ensure a swift adoption and to ensure that the macro-financial assistance to Ukraine will flow as quickly as possible, EU member states agreed on Wednesday that if the European Parliament adopts the European Commission's proposal without amendments, the Council will also adopt the text without changes.
After the European Parliament adopts the text in the first reading, the Council of the EU plans to approve the decision by written procedure. The decision will then enter into force the day after publication in the EU's Official Journal.
The aim is to make the MFA loan available in 2024, with disbursement in 2025, with maximum maturity of 45 years.