Ukraine: Council approves € 1.8bn in loans
The Council adopted on 31 March 2015 a
decision providing a maximum of €1,8 billion in
further macro-financial assistance to Ukraine.
The aim is to support economic stabilisation of the country and a substantive reform
agenda, contributing to its balance-of-payments needs as identified by the IMF.
Loans
The assistance will be available for a
period of two and a half years. It will be provided in the form of loans, to be
disbursed in three
instalments. The loans will have a maximum maturity of 15 years.
The Commission and Ukraine will also
agree a loan
agreement laying
down the detailed terms of the macro-financial assistance.
Conditionality
The Commission will decide on the
release of funds. The assistance will be subject to a memorandum of
understanding (MOU), to be agreed between the Commission and Ukraine. The MOU
will lay down clearly defined economic policy and financial conditions,
focusing on structural reforms and sound public finances.
Additional
assistance
The €1.8 billion of loans will be
additional to €1.61 billion of macro-financial assistance already decided in
2010 and in 2014. Ukraine has requested further assistance in view of its
worsening economic situation.
The decision adopted by the Council does
not change the Commission's proposal, submitted on 8 January 2015. The European
Parliament approved the Commission's proposal without amendment on 25 March
2015.
The decision will enter into force on
the third day following publication in the Official Journal.
Council of
the European Union