Against the backdrop of Ukraine's huge budget deficit, the current intrigue is whether Brussels will agree to support a multi-billion euro EU loan for Kyiv, using frozen Russian state assets. UNN writes this with reference to Politico.
Details
As the US has somewhat reduced its support for Ukraine, the financial capacity of the country, which has been suffering from aggression from the Russian Federation for many years, depends on whether the EU will be able to issue a "reparation loan" of 140 billion euros, secured by the aggressor country's frozen assets. Against this background, the question of further support for Ukraine from the IMF arises.
Politico writes that Belgium's refusal to support a multi-billion euro EU loan for Ukraine could prompt the International Monetary Fund to block financial support for Kyiv. Earlier, the IMF considered providing Kyiv with an $8 billion loan over the next three years.
We are facing a time frame problem
Politico's source points to the fact that the next meeting of EU leaders is scheduled only for December 18 and 19, but Ukraine needs more urgent decisions.
While the US has to some extent stepped back from the financial burden of supporting Ukraine, these needs will be borne by the EU in the coming years. However, the uncertainty of the "reparation loan" and the possible delay of the IMF program, as Politico notes, will have an impact, creating distrust among investors regarding the financial viability of Ukraine, which continues its path to reforms.
Recall
European leaders are considering using frozen Russian assets to provide loans to Ukraine that may not be repaid.
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