The EU will provide Ukraine 1.2 billion euros

The EU will provide neighboring countries 3 billion euros to combat the coronavirus, of which Ukraine will have the right to obtain loans in the amount of 1.2 billion euros.

ЕС выделит Украине 1,2 млрд евро

According to “true European”, the decision of the Commission adopted on Wednesday.

The European Commission announced the granting of macro-financial assistance to combat pandemic coronavirus 10 countries. Out of a total of 3 billion euros more just to get Ukraine to 1.2 billion euros. On the second place on volume — Tunisia (600 million), the third — Bosnia and Herzegovina (250 million).

The decision on granting macro-financial assistance is not final, according to EU rules it needs approval by the European Parliament and the Council of the EU, and in Ukraine it will require the approval of the Verkhovna Rada. The European Commissioner for economic Affairs Paolo Gentiloni urged the EP and the EU Council “as soon as possible to take this important package (agreements on macro-financial assistance),” said the press service of the EC.

It is important to note that financial assistance is not irrevocable and is granted in the form of low-interest loans.

However, loans under macro-financial assistance are long-term and have low floating interest — the EU takes these funds in the international markets and transfers the funds at the disposal of partner countries. The term of the loan and whether it is divided into several tranches, is not specified. The aim of macro-financial assistance is to overcome the budget deficit, so recipient States have the right to spend funds at their discretion, financing ordinary budget expenditures.

The obligatory loan condition is the resumption of Ukraine’s cooperation with the IMF.

As you know, a key requirement for the beginning of financing is making changes to legislation that will make it impossible to return to former owners of PrivatBank. Earlier, the EU Ambassador called “andikalovsky” the law is a litmus test for Ukraine.