On January 16, a Memorandum of Understanding and a Loan Agreement were signed between Ukraine and the European Union on macro-financial assistance for Ukraine in the amount of EUR 18 billion.

The respective agreements were signed by Minister of Finance of Ukraine Serhii Marchenko and Governor of the National Bank of Ukraine Andriy Pyshnyy, on behalf of Ukraine, and by Executive Vice-President of the European Commission Valdis Dombrovskis, on behalf of the EU.

It is expected that the first tranche of EUR 3 billion will be disbursed by the end of January this year.

“We highly appreciate our cooperation with the European Union and are sincerely grateful for the support of Ukraine in the conditions of full-scale war. During the systematic destruction of civilian and critical infrastructure by russia, Ukraine counts on support from partner countries and needs a rhythmic and predictable flow of funds to finance social and humanitarian needs of the state budget. The macro-financial assistance of the European Union in the amount of EUR 18 billion will largely ensure financing of priority budget expenditures and smooth functioning of the Ukrainian economy this year,” said Serhii Marchenko.

According to the agreements, concessional loans will be transferred to the state budget of Ukraine in 2023 in equal installments, subject to fulfillment by Ukraine of conditions agreed by the parties.

The attracted funds of macro-financial assistance will be used to ensure priority social and humanitarian expenditures of the state budget, in particular for the salaries of employees of state bodies and budgetary institutions of the educational sphere, medical institutions, payment of pensions and financing of certain programs of state social assistance, support for low-income families, children with disabilities and persons disabled since childhood, IDPs. The attracted funds will also contribute to the preservation of financial and economic stability in Ukraine.