On Monday, Ukraine and the EU signed a Memorandum of Understanding and a Loan Agreement on macro-financial assistance to Ukraine worth €18 billion agreed upon in December, the Ukrainian Finance Ministry reported.
The same day, the European Commission President Ursula von der Leyen announced on Twitter that the first €3 billion of the loan is to be disbursed on Tuesday.
Helping Ukraine meet its financing needs to face the Russian aggression is both crucial and urgent.
The Commission is acting with utmost speed and determination:
Tomorrow, we will already disburse the first 3 billion € of the 18 bn macro-financial support agreed in December. pic.twitter.com/fFl7F1mhMQ
— Ursula von der Leyen (@vonderleyen) January 16, 2023
The documents were signed by Finance Minister Serhiy Marchenko and National Bank of Ukraine Governor Andriy Pyshny on behalf of Ukraine and by EC Executive Vice-President Valdis Dombrovskis on behalf of the EU.
“We highly appreciate our cooperation with the European Union and are sincerely grateful for the support of Ukraine in the conditions of full-scale war,” Marchenko said. “During the systematic destruction of civilian and critical infrastructure by Russia, Ukraine counts on support from partner countries and needs a rhythmic and predictable flow of funds to finance social and humanitarian needs of the state budget.”
According to Ukrainska Pravda, which refers to its sources in the government, the loan maturity is 35 years with a 10-year grace period, and the interest will be covered by EU member states.
The first installment, €3 billion, will be provided unconditionally. The rest of €15 billion will be transferred to the state budget of Ukraine in 2023 in equal installments subject to the implementation by Ukraine of a number of reforms stipulated in the Memorandum in four blocks: “Rule of Law,” “Energy,” “Structural Reforms and Good Governance” and “Macro-financial Stability,” according to Ukrainska Pravda.
