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Ukraine: EU Council endorses agreement on further €1bn in loans

The first tranche of 500m euros can be disbursed in September.

Ukraine: EU Council endorses agreement on further €1bn in loans

The EU Council has approved €1 billion of new loans to cover Ukraine's financing needs and support economic stabilisation and a programme of structural reforms, its press service has tweeted.

The first tranche of 500m euros can be disbursed in September provided the IMF resumes its loan assistance to Ukraine.

As reported earlier, on 29 May 2018, EU ambassadors endorsed, on behalf of the Council, an agreement with the European Parliament on a new package of macro-financial assistance for Ukraine.

The EU pledged €1.6 billion of macro-financial assistance in 2014 and €1.8 billion in 2015, of which Ukraine received €2.81 billion. A €600 million instalment was cancelled in January 2018 due to incomplete compliance with the conditions set.

The further disbursements will be conditional on Ukraine respecting democratic mechanisms and the rule of law, and guaranteeing respect for human rights. They will be subject to economic policy and financial conditions, focusing on structural reforms and sound public finances and including a timeframe for their fulfilment. The conditions will be laid down in a memorandum of understanding between Ukraine and the Commission.

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