The Council of the European Union has finalized the adoption of emergency assistance of 1.2 billion euros for Ukraine, which will take the form of loans. The Eastern European country suffers from investment withdrawal and difficulty in accessing the international market amid geopolitical uncertainty in the region.
“The EU acted quickly and decisively to help Ukraine. In 21 days, we have completed the necessary work, which means that EUR 1.2 billion macro-financial assistance can now reach Ukraine,” said Bruno Le Maire, French Minister of Economy, Finance and Recovery.
This proposal was formalized on February 1, 2022 by the European Commission and will last for 12 months.
The release of the first tranche, subject to the political precondition and satisfactory implementation of the IMF program, would occur quickly after the approval of this proposal.
The second tranche would be linked to the continued and satisfactory implementation of an IMF program and policy measures agreed in the memorandum of understanding. According to a Council statement, the memorandum will focus “on a limited number of feasible, short-term policy actions in the most urgent priority areas, such as strengthening economic resilience and stability, governance and the rule of law and energy.” .
Since 2017, Ukraine has an agreement with the European Union to promote diplomatic and economic relations.
Among other support instruments, between 2014 and 2021, the EU supported Ukraine through five consecutive macro-financial assistance (MFA) operations totaling €5 billion in loans.
Source: CNN Brasil
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