The EC Has Offered to Allocate 18bln Euros to Ukraine

The funds will be provided in the form of loans on very favorable terms. The loans will be repaid for up to 35 years starting from 2033. The European Commission has officially announced a proposal to provide Ukraine in 2023 with 18 billion euros in the new format of macrofinancial support. This was announced on the website of the EC on Wednesday, November 9. “Following a meeting of the European Council on October 20-21, the Commission today proposed an unprecedented support package for Ukraine of up to 18 billion euros for 2023. It will be provided in the form of loans on very favorable terms, which will be repaid in regular installments from 2023,” the statement said. It indicates that this stable, regular and predictable financial assistance – an average of €1.5 billion per month – will help to cover a significant part of Ukraine’s short-term financing needs for 2023, which, according to estimates by the Ukrainian authorities and the IMF, amount to €3-4 billion per month. The rest of the funds will be provided to Kyiv by other major donors. “The funds will be provided in the form of loans on very concessional terms, which must be repaid over a maximum of 35 years, starting in 2033. As a further expression of solidarity, the EU also offers to cover Ukraine’s interest costs through additional earmarked payments by member states to the EU budget,” the European Commission said. It is emphasized that the allocation of funds should be accompanied by reforms that will help Ukraine advance on the path to EU accession. “This means that the Ukrainian government will have to supplement the financial support with sectoral and institutional reforms, including anti-corruption and judicial reforms, respect for the rule of law, good governance and modernization of national and local institutions. We will check the effectiveness of these reforms when we pay our contributions,” Brussels said. At the same time, the European Commission puts forward three legislative proposals to ensure uninterrupted funding for Ukraine. Before they take effect, they must be approved by the European Parliament and EU member states in the Council. Earlier, the media reported that Hungary blocked an 18-billion-euro aid package from the EU to Ukraine. The Hungarian government said that it would not support the changes required for the preparation of the aid package for Ukraine.