Ukraine: Council approves €1.8bn in loans
The Council adopted on 31 March 2015 a decision providing a maximum of €1,8 billion in further macro-financial assistance to Ukraine.
The aim is to support economic stabilisation of the country and a substantive reform agenda, contributing to its balance-of-payments needs as identified by the IMF.
The assistance will be available for a period of two and a half years. It will be provided in the form of loans, to be disbursed in three instalments. The loans will have a maximum maturity of 15 years.
The Commission and Ukraine will also agree a loan agreement laying down the detailed terms of the macro-financial assistance.
The Commission will decide on the release of funds. The assistance will be subject to a memorandum of understanding (MOU), to be agreed between the Commission and Ukraine. The MOU will lay down clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances.
The €1.8 billion of loans will be additional to €1.61 billion of macro-financial assistance already decided in 2010 and in 2014. Ukraine has requested further assistance in view of its worsening economic situation.
The decision adopted by the Council does not change the Commission's proposal, submitted on 8 January 2015. The European Parliament approved the Commission's proposal without amendment on 25 March 2015.
The decision will enter into force on the third day following publication in the Official Journal.