E.U. releases EUR 0.5 bln macrofinancial loan to Ukraine
1 June 2020
The European Commission approved on May 29 a EUR 0.5
bln loan to Ukraine in what is its fourth macrofinancial assistance (MFA-IV)
program, its press release said on May 29. With this disbursement, Ukraine has
received EUR 3.8 bln in MFA loans from the E.U. since 2014, the largest amount
to any single partner country.
The disbursement was the result of Ukraine
implementing 12 E.U. policy actions in the fields of combating corruption and
money laundering, public finance management, banking sector, energy, healthcare
and social policies.
The E.U. also said it will make EUR 1.2 bln in MFA
loans available to Ukraine in order to limit the economic fallout from the
coronavirus pandemic. The issue will have to be preceded by a Memorandum of
Understanding, which will outline the policy actions that Ukraine will have to
commit to in order to receive the assistance.
Evgeniya Akhtyrko: This loan, alongside with expected IMF and the World Bank financing, will help Ukraine’s government deal with
coronavirus crisis challenges, including financing a ballooned budget deficit and staying current with domestic and external
obligations during the year. Such financing will also bolster the potential of
Ukraine’s international debt, as the capacity of the domestic debt market is
likely to be insufficient to balance government finances during the year.
