The European Union is developing a "plan B" to provide Ukraine with €20 billion in aid to circumvent a possible Hungarian veto, The Financial Times reports, citing sources.
This option is a debt-financed model. It involves EU countries providing guarantees to the EU budget worth up to €20 billion. This will allow the European Commission to borrow the corresponding amount on the capital markets in the interests of Kyiv.
The exact terms of the plan and the final amount are still being discussed.
If EU leaders agree on this plan at a special EU summit on 1 February, it will allow the IMF to disburse the next tranche to Kyiv, worth about $900 million.
In addition, Brussels is considering another backup option, which involves providing Ukraine with cheap short-term loans. Under this scheme, Ukraine has already received €18 billion this year.