EU Council adopts $18.9bln package for Ukraine loans
The European Council adopted a loan package for Ukraine that will see some €18 billion going to the country with a 10-year grace period/
-
The EU Council then explained that the 27-nation bloc's loans to Kiev would have a 10-year grace period
The European Council announced on Saturday that it was approving a package of documents allowing the European Union to provide Ukraine with $18.9 billion of credit support in 2023.
The council issued a statement saying it had "reached an agreement on a legislative package which will enable the EU to help Ukraine financially throughout 2023 with €18 billion."
"The proposal was adopted by the Council today via a written procedure and it will be submitted to the European Parliament for its possible adoption next week," the statement added.
The EU Council then explained that the 27-nation bloc's loans to Kiev would have a 10-year grace period, with guarantees provided by the bloc's member states or the EU's budget.
Members of the European Parliament gave their approval on November 24 to a loan of €18 billion to help Ukraine during the war.
The $18.9 billion will cover roughly half of Ukraine's projected 2023 monthly funding of three to four billion euros.
The European Commission's proposal states that the funds will be used to support macroeconomic stability, the rebuilding of crucial infrastructure, and the operation of essential public services like running hospitals, schools, and housing for displaced people.
The EU loan, obtained from financial markets, will be repaid in quarterly installments with the consistency and predictability needed to keep Ukraine afloat amid the conflict.
It is conditional for Ukraine. The country needs reforms to fortify its institutions and get it ready for both reconstruction and its path to EU membership.
The conditions include steps to combat corruption, judicial reform, respect for the rule of law, good governance, and institution modernization, all of which will be examined by the European Commission before each installment.
Before the Commission can access the markets and distribute the support in early 2023, the loan had to receive unanimous approval from the EU Council by December 6.
€19.7 billion have been given to Ukraine by the EU and its member states, the majority of which came in the form of macrofinancial aid that was authorized by the European Parliament in September and July.
