The European Commission has finally approved EUR 1.2 billion worth of macro-financial assistance to Ukraine
The European Commission endorsed this decision on April 22, 2020. This extension is yet to be followed by approvals stamped by the European Parliament and the Council of the European Union.
Paolo Gentiloni, European Commissioner for Economic and Financial Affairs, stated that “European solidarity must not come to a stop at the borders of our Union. Inasmuch as we either hold out or succumb together in this global crisis. The European Commission is taking now a decisive step to help our neighbours fight the coronavirus menace. I call on the European Parliament and the Council to agree on this important MFA package as soon as possible".
Macro-financial
assistance funds are loans of very favourable terms aimed to help recipient countries
meet their immediate and pressing financial needs. Along with the International
Monetary Fund's financial support, these funds can be used to support
macroeconomic stability, protect citizens and limit the socio-economic fallout
of the coronavirus pandemic. As with routine EU macro-financial assistance, the
tranches will be contingent on the progress in the implementation of the IMF
programme and the use of IMF’s funds.