European Parliament approves €1.2 billion in loans to Ukraine

On Wednesday, the European Parliament gave the green light to a €1.2 billion macro-financial loan to help Ukraine cover its external financing needs in 2022.

The Parliament agreed to a European Commission proposal to provide Kyiv with macro-financial assistance. It will be paid out in two installments.

The loan serves as “swift support in a situation of acute crisis and to strengthen the resilience of the country”, the proposal states. Ukraine’s external financing has dried up due to Russia’s military threat and the worsening economic situation in the wake of the COVID-19 pandemic.

Half of the €1.2 billion loan can be disbursed immediately to foster stability in Ukraine, if certain preconditions are met.

In order for the money to be disbursed, the country must show progress in implementing a macroeconomic programme set up by the International Monetary Fund (IMF). MEPs emphasise that “effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guarantees respect for human rights” are also preconditions for disbursement.

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Press release

Council supports €1.2 billion assistance to Ukraine