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European Parliament approves €18 billion loan for Ukraine for 2023

  • By Al Mayadeen English
  • Source: Agencies
  • 24 Nov 2022 16:01
  • 1 Shares
2 Min Read

More aid is on the way for Ukraine.

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  • European Parliament approves €18 billion loan for Ukraine for 2023.
    European Parliament approves €18 billion loan for Ukraine for 2023.

Members of the European Parliament gave their approval on November 24 to a loan of 18 billion euros to help Ukraine during the war. 

The 18 billion euros 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.

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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.

Read next: World Bank disburses additional $500 mln to Ukraine

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 must now receive unanimous approval from the EU Council by December 6.

19.7 billion euros 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.

Read next: EU to make monthly aid cash transfers to Ukraine of 1.5bln euros

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