EU Commission transfers EUR 260 mln to Ukraine

The European Commission, on behalf of the EU, disbursed on Nov. 12 EUR 260 mln to Ukraine as part of EU Macro-Financial Assistance (MFA) for the country, the European Commission reported on its website yesterday. This loan disbursement adds to the EUR 600 mln disbursed earlier this year under two ongoing EU MFA programs. Following the EUR 260 mln disbursement, EUR 750 mln remains available under the two current programs for Ukraine.

EU MFA loan support for Ukraine currently amounts to EUR 1.61 bln. Two disbursements were made earlier this year: EUR 100 mln on May 20 and EUR 500 mln on June 17. Further disbursements of EUR 500 mln and EUR 250 mln are intended by the year end and by spring 2015, respectively, provided the Ukrainian government shows satisfactory progress with accompanying reforms. 

Alexander Paraschiy: This disbursement is a positive signal that can be considered an early indication that the IMF also will be satisfied with Ukraine’s compliance with committed reforms. At the same time, EUR 260 mln will not improve Ukraine’s gross international reserves against the backdrop of USD 3.1 bln in natural gas debt due by the year end.