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EU financial aid to be spent for return of previous debts, not social obligations

"It is not the automatic receiving of money. Ukraine has not fulfilled two commitments from the previous program yet," the expert said.
16:11, 10 September 2018

opposition.org.ua

The financial aid from the EU will not be spent on the social obligations but for the return of the previous debts. Viktor Skarshevsky, the economic expert claimed this commenting the provision of the credit to Ukraine as 112 Ukraine reported.

"First, it is a credit at the low-interest rate, but it is also returnable credit; Ukraine will be obliged to return money received from the EU as well as 1.2 billion euro received earlier. Secondly, this money will not be received by the National Bank but by budget. The money will be spent not on the social obligations but for the return of the previous debts. Finance Ministry has the liquidity shortfalls and these 500 million will be received and immediately given away. Why is it 500 million euro? Because the money will not be provided in once, but by two tranches," he said.

Related: IMF visit is evidence of improvement of prospects of financial aid allocation, - NBU

"Again, it is not the automatic receiving of money. Ukraine has not fulfilled two commitments from the previous program yet. The first one –moratorium for roundwood is not canceled yet and it should not be canceled. The second – the automatic system of the check of the e-declarations is not implemented yet," Skarshevsky added.

"I would like to tell one more thing, because the discourse is "money given – not given", "for what the money will be spent". We need to look at another direction – if the EU  wants Ukraine to develop, it will give Ukraine the possibility to develop, for example, by cancelling 36 quotas for the export of the Ukrainian products in Europe, construction of Nord Stream 2 and by participation in the modernization of the Ukrainian gas transportation system," he said.

Related: Total government debt shrinks by 0.7% to $75.7 billion in July – finance ministry

As we reported Valdis Dombrovskis, the European Commission Vice-President for the Euro and Social Dialogue will come to Ukraine on September 13 and 14, in order to sign the deal on the EU macro-financial assistance for Ukraine; the sum of the aid equals one billion Euros.

As we reported the European Commission has decided to allocate another package of macro-financial assistance (MFA) worth up to €1 billion to Ukraine for the support of the country’s effort to implement structural reforms and stabilize its economy.

On May 29, the Ambassadors of the EU countries on the behalf of the EU Council approved the agreement with the EU Parliament on the parcel of the macro-financial aid to Ukraine.

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