On Wednesday, the European Commission signed a memorandum of understanding with Ukraine on the macro-financial assistance program, paving the way for the disbursement of the first tranche of 3.2 billion euros “around mid-June.” The European Commissioner for the Economy, Valdis Dombrovskis, announced this in Brussels on Wednesday, Reuters reported.
- The European Commission concluded a memorandum with Ukraine on macro-financial assistance today.
- The first tranche of aid of 3.2 billion euros will arrive around mid-June.
- The total loan package for Ukraine reaches 90 billion euros until 2027.
- 28.3 billion of this year’s money goes to Ukraine’s military expenses.
- The disbursement of aid is conditioned by reforms in the fiscal area and financial management.
This macro-financial assistance is part of a wider package in the amount of 90 billion euros, the aim of which is to ensure the financing of Ukraine during the years 2026 and 2027, writes TASR. “We have completed negotiations with Ukraine on a memorandum of understanding that forms the basis of our macro-financial assistance program under the Ukraine Support Loan,” said Dombrovskis. He specified that the memorandum, after being signed by Ukraine, must be ratified by the Ukrainian parliament, and only then will the funds be disbursed.
According to Dombrovskis, the entire loan agreement in the amount of 90 billion euros could be signed within a few days. Of this amount, 45 billion euros are to be paid out this year and another 45 billion in 2027.
Of the funds allocated for this year, 28.3 billion euros are earmarked for military spending and 16.7 billion euros for general budget support. This is divided between macro-financial assistance and the so-called Ukrainian instrument intended for the restoration, reconstruction and modernization of the country.
Dombrovskis said that macro-financial assistance is conditional on reforms in Ukraine with a strong emphasis on the fiscal area, improvement of tax collection, efficiency of public spending and management of public finances. “We closely coordinated the procedure with the International Monetary Fund so that the conditions were aligned and, if necessary, complementary to the IMF program,” Dodal Dombrovskis.
