Photo: European Union
On 29 May 2018, EU ambassadors endorsed, on behalf of the Council, an agreement with the European Parliament on a new package of macro-financial assistance for Ukraine.
A further €1 billion in loans will cover Ukraine’s financing needs over a period of two and a half years. The loans will support economic stabilisation and a programme of structural reforms, supplementing resources provided by the IMF and other donors.
The IMF has identified a $4.5 billion financing gap for 2018 and 2019, going over and above funding committed so far by the international community.
Macro-financial assistance is an exceptional form of financial aid that the EU extends to partner countries with balance-of-payments difficulties. This is the third operation for Ukraine since 2014. The EU additionally provides assistance under its neighbourhood policy.
The EU pledged €1.6 billion of macro-financial assistance in 2014 and €1.8 billion in 2015, of which Ukraine received €2.81 billion. A €600 million instalment was cancelled in January 2018 due to incomplete compliance with the conditions set.
Ukraine is part of the EU’s Eastern Partnership. An EU-Ukraine association agreement, which includes free trade provisions, entered into force on 1 September 2017.
Read the full press release on the website of the Council of the European Union.