EC poised to extend EUR 1.2-bn loan to Ukraine to battle coronavirus pandemic

Information Department of the Verkhovna Rada of Ukraine Secretariat
23 April 2020, 18:45

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.