The Parliament of Ukraine ratified the agreements with the European Union on EU macro-financial assistance in the amount of up to EUR 1.2 billion
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Today, August 25, 2020, the Parliament of Ukraine has supported the Law of Ukraine "On Ratification of the Memorandum of Understanding between Ukraine as Borrower and the European Union as Lender and the Credit Agreement between Ukraine as Borrower and the National Bank of Ukraine as the Borrower’s Agent and the European Union as Lender (on receiving by Ukraine of macro-financial assistance from the European Union in the amount of up to EUR 1 billion 200 million).
"The assistance provided by the European Union is crucial in the face of declining economic activity in our country as a result of quarantine restriction measures introduced to prevent the spread of coronavirus disease, and is evidence of a consistent EU policy to support Ukraine as well as of friendly relations between the parties," stressed Minister of Finance of Ukraine Serhii Marchenko presenting the draft law from the rostrum of the Parliament.
It should be reminded that the Memorandum of Understanding and the Credit Agreement were signed on July 23 this year in Brussels as part of the European Union's exclusive support to the European Neighborhood Policy countries, including Ukraine, to support their efforts to overcome the COVID-19-inflicted crisis.
The implementation of these agreements will allow Ukraine to attract additional external financial credit resources on favorable terms to ensure proper stability of the financial and economic system of the state.
The program is intended for 12 months and will envisage the payment of two tranches of EUR 600 million, the first of which is unconditional and will be allocated immediately after ratification and entry into force of international treaties. The second tranche should be allocated based on the results of the assessment of Ukraine's implementation of measures to reform the sectors of public policy implementation agreed by the parties, in particular:
- public finance management;
- good governance and the rule of law;
- improving the business climate;
- sectoral reforms and state-owned enterprises.