EU finance ministers give another 5 billion euros in credit to Ukraine

EU finance ministers give another 5 billion euros in credit to Ukraine

European Union finance ministers on Friday agreed to provide an additional €5 billion in aid to Ukraine to help the country continue to fight the Russian invasion.

“It is excellent news that ministers have approved the next part of our exceptional macro-financial assistance programme,” European Commission Vice-President Valdis Dombrovskis said at a meeting of EU finance ministers in Prague.

The European Commission proposed to increase the amount on the capital markets, with interest and fees from the EU budget.

“EU ministers are ready to provide national guarantees to make available EUR 5 billion in loans,” Dombrovskis wrote on Twitter.

However, the proposed amount is part of a €9 billion aid package announced in May.

Meanwhile, the last tranche still needs the approval of the European Parliament, although this is seen as a formality, of which € 1 billion was paid out at the beginning of August.

The commission borrows on capital markets on behalf of the EU to finance the macro-financial assistance (MFA), as it is formally called.

According to the commission in a statement, MFA operations are an EU crisis response tool available to neighboring countries of the EU experiencing serious balance of payments problems.

Back1 of 2

Leave a Comment

Your email address will not be published.