The European Commission signed a memorandum of understanding with Ukraine on Thursday regarding a macro-financial assistance program, which paves the way for the disbursement of 3.2 billion euros in mid-June, following its ratification by the Ukrainian parliament, UNN reports, citing Reuters.
Details
The macro-financial assistance is part of a larger EU funding package of 90 billion euros, intended to ensure financing for Ukraine through 2026 and 2027.
"We have concluded our negotiations with Ukraine on the memorandum of understanding underpinning our macro-financial assistance program within the loan to support Ukraine," said European Commissioner for Economy Valdis Dombrovskis.
"I signed it this morning, and now it still has to be signed by the Ukrainian side, and it also has to be ratified by the Rada of Ukraine... so that we can then proceed with the payments,"
An agreement on the entire 90 billion euro loan could be signed "within days," Dombrovskis said. Of the total 90 billion euro loan, 45 billion will be allocated this year, and another 45 billion in 2027.
Of the funds arriving this year, 28.3 billion is designated for military spending, and 16.7 billion for general budget support. The general budget funds are split equally between macro-financial assistance and the Ukraine Facility, intended for the recovery, reconstruction, and modernization of Ukraine.
Dombrovskis said that the provision of macro-financial assistance is conditional on Ukraine implementing reforms with a strong fiscal focus, aimed at increasing domestic revenue mobilization, the efficiency of public spending, and public financial management systems.
"We have also coordinated closely with the International Monetary Fund to ensure that the conditions are consistent and, where necessary, let's say, additional or complementary to the IMF program," Dombrovskis said.