G7 to announce $50 billion loan for Ukraine on October 25 - European Commissioner
Kyiv • UNN
On October 25, G7 partners will announce contributions to a $50 billion loan to Ukraine. The repayment will be made from the proceeds of frozen Russian assets, and the EU is expected to provide €35 billion.
On October 25 in the United States, the Group of Seven partners will announce their contributions to the initiative for a $50 billion loan to Ukraine, to be repaid from the proceeds of immobilized Russian assets. This was stated by European Commissioner for Justice Didier Reynders in the European Parliament on Tuesday as part of the discussion of the EU's contribution of 35 billion euros, UNN reports.
Details
"The European Commission's proposal calls for a loan of up to €35 billion with an automatic adjustment mechanism. (...) Later this week, on October 25, in Washington, the G7 partners will announce their contributions. We continue to work closely with our partners to secure their contributions to the Extended Revenue Arrangement (ERA) for Ukraine," said Reynders.
Addendum
On October 9, 2024, the EU Council reached an agreement on a financial assistance package for Ukraine. This includes an exceptional macro-financial assistance loan of up to EUR 35 billion and a credit cooperation mechanism to help Ukraine repay up to EUR 45 billion in loans from the European Union and G7 partners.
The purpose of the financial assistance is to provide immediate support to meet Ukraine's urgent financial needs, which have increased as a result of Russia's increased aggression.
The repayment of the exceptional macro-financial assistance loan and related bilateral loans from G7 partners under the initiative of additional loans to increase revenues to Ukraine (Extraordinary Revenue Acceleration Loans for Ukraine, ERA) will be made from future extraordinary revenue streams originating from the immobilized Russian sovereign assets.
The Ukraine Lending Facility will provide these funds, as well as possible amounts received as voluntary contributions from EU member states and countries outside the Union or from other sources, in the form of financial support to Ukraine to help it service and repay the loans.
The macro-financial assistance loan of up to EUR 35 billion is the EU's contribution to the G7 loan of up to EUR 45 billion. The new Macro-Financial Assistance operation will be tied to political conditions consistent with the Ukraine Facility and, in particular, the Program Implementation Plan. The management and control systems proposed in the Ukraine Facility Implementation Plan and the specific provisions for the prevention of fraud and other irregularities will also apply to the macro-financial assistance loan.
On October 9, EU member states agreed that if the European Parliament approves the European Commission's proposal without changes, the EU Council will also approve the text without changing it, in order to speed up the adoption and ensure the fastest possible flow of macro-financial assistance to Ukraine.
