EU proposes €18 billion support package for Ukraine
Updated: 09 November 2022 22:46 STI
Brussels [Belgium]November 9 (ANI): The European Commission on Wednesday proposed an unprecedented support package for Ukraine of up to 18 billion euros for 2023. This will take the form of highly concessional loans, disbursed in regular installments from 2023.
This stable, regular and predictable financial assistance – averaging €1.5 billion per month – will help to cover a significant part of Ukraine’s short-term financing needs for 2023, which the Ukrainian authorities and the International Monetary Fund estimate at 3 to 4 billion euros per month. The support offered by the EU should be accompanied by similar efforts from other major donors to cover all of Ukraine’s funding needs for 2023.
With this package, the EU intends to help Ukraine pay salaries and pensions and maintain the functioning of essential public services, such as hospitals, schools and accommodation for relocated people.
“It will also allow Ukraine to ensure macroeconomic stability and restore critical infrastructure destroyed by Russia in its war of aggression, such as energy infrastructure, water supply systems, transport networks, roads and bridges,” the commission said.
“Support under the Instrument will be accompanied by reforms, to further strengthen the rule of law, good governance, anti-fraud and anti-corruption measures in Ukraine. Therefore, while taking into account developments on the ground, financial support will be framed by political conditions, aimed at strengthening Ukraine’s institutions and preparing the ground for a successful reconstruction effort, as well as supporting Ukraine on its European path “, said the 27-member bloc.
In addition, the commission said the funds will be provided through highly concessional loans, to be repaid over a maximum period of 35 years, starting in 2033.
“In another expression of solidarity, the EU also offers to cover Ukraine’s interest costs, through additional targeted payments by Member States to the EU budget. EU Member States and third countries will also be able to add additional funds to the instrument, to be used as grants, if they wish.The funds will then be channeled through the EU budget, allowing Ukraine to receive support in a coordinated manner,” the block added.
The Russian-Ukrainian conflict which began eight months ago shook Europe. The European Union and its Member States have shown solidarity with people fleeing war.
The Union immediately mobilized support for the Ukrainian government to maintain its essential functions, in addition to the emergency and humanitarian aid and military assistance provided to Ukraine. (ANI)