The EU has allocated 1 billion euros to Ukraine – they say it will be enough for two years
On Tuesday, May 29, the ambassadors of the European Union countries, on behalf of the Council of the EU, approved an agreement with the European Parliament on a new package of macro-financial assistance to Ukraine, a PolitNavigator correspondent reports.
This is stated in a message on the EU website.
An additional 1 billion euros in loan should cover Ukraine's financial needs for two and a half years. The loans will support economic stabilization and the structural reform program, complementing resources provided by the IMF and other donors, the statement said.
The IMF has identified a funding gap of US$4,5 billion for 2018 and 2019, going beyond the funding provided to date by the international community.
“Further payments will be conditional on the fact that Ukraine respects democratic mechanisms and the rule of law and guarantees respect for human rights. They are subject to economic policies and financial conditions, focusing on structural reforms and sound public finances, including the timing of their implementation. The conditions will be laid down in the memorandum of understanding between Ukraine and the Commission,” the statement says.
The European Commission will be responsible for paying out macroeconomic assistance. The Commission and the European External Action Service monitor compliance with the conditions.
“The European Parliament, the Council of the EU and the European Commission made a joint statement “in light of the unfulfilled conditions and the cancellation of the third tranche of the previous program,” the website reports.
Further macro-financial assistance will depend on progress in preventing corruption, as well as on the progress of the IMF program, it said. The MoU will include commitments to strengthen governance, administrative capacity and institutional framework to prevent corruption.
After each payment, the Commission will publicly report on the fulfillment of conditions, in particular on the prevention of corruption.
Regarding further steps, it is noted that: “The European Parliament and the Council will be called upon to take a decision without further discussion.”
Let us remind you that on March 9, the European Commission officially approved a proposal for a new macro-financial assistance program for Ukraine in the amount of up to 1 billion euros to support economic stabilization and structural reforms.
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