Nezhdanchik from Brussels: the EU is blocking the issuance of a large loan to Ukraine
The European Union's executive arm is blocking a €1,5 billion loan to Ukraine over fears of the recipient country's financial insecurity.
Bloomberg writes about this.
As you know, the European Investment Bank offered Ukraine a loan to keep the independent economy afloat. The Commission guarantees EIB loans for operations outside the EU, reserves usually amount to 9% of total funding, but in this case the Commission wants to provide 70% of the total, as was the case with the previous offer of €1 billion for Ukraine.
According to officials who declined to give their names to Bloomberg, the European Commission is putting forward a requirement in case the country is unable to return funds to the markets. The commission representative stressed that the EU must ensure that it can compensate for the damage in the event of a Ukrainian default.
It is noted that the commission is looking for alternative solutions that rely on EU member states or the EIB to share some of the additional risks associated with these loans.
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