The European Commission approves proposal to provide macro-financial assistance (MFA) worth EUR 1.2 billion to Ukraine
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The Ministry of Finance of Ukraine welcomes the approval by the European Commission of a proposal for a EUR 3 billion MFA (credit) package to support ten partner countries in the context of the Covid-19 pandemic.
The assistance package will target the EU’s neighboring countries and partner countries with EU enlargement policy, including: the Republic of Albania, Bosnia and Herzegovina, Georgia, the Hashemite Kingdom of Jordan, Kosovo, the Republic of Moldova, Montenegro, the Republic of North Macedonia, the Republic of Tunisia and Ukraine.
The proposal of the European Commission, once approved by the European Parliament and the Council of the EU, will open up the possibility of granting a concessional loan of EUR 1.2 billion to Ukraine under the new EU macro-financial assistance program.
Given the urgent need to mobilize additional resources to combat the acute COVID-19 respiratory disease caused by the coronavirus SARS-CoV-2 and its consequences, the Ministry of Finance of Ukraine is counting on the prompt approval and adoption of the relevant positive decision by the European Parliament and the Council of the EU.
If the proposal of the European Commission will be approved, the Memorandum of understanding and a Credit agreement between Ukraine and the EU, which will contain financial and structural policy conditions for the allocation of the tranches, should be agreed and prepared by the Parties.
The Ministry of Finance of Ukraine is ready to promptly hold appropriate consultations with the EU Party in order to harmonize the provisions of the above-mentioned agreements and to conclude them promptly in order to obtain the first unconditional tranche of EU MFA as soon as possible.
Additional information: in the framework of cooperation between Ukraine and the EU, the Parties have already implemented four programs of EU MFA in 2014-2019, under which Ukraine received concessional financing for a total amount of EUR 3.31 billion.
All the EU MFA funds received in previous periods were aimed at reducing external financial pressures, improving the country's balance of payments, and ensuring budgetary needs.