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European Parliament approves EUR 1 billion of macrofinancial assistance for Ukraine

Source : 112 Ukraine

Ukraine has received a total of EUR 2.81 billion of macro-financial assistance from the Union since 2014.
14:12, 18 June 2018

AFP

The European Parliament voted in favor of the third Macro-Financial Assistance package worth EUR 1 billion to Ukraine.

European lawmakers approved another program of macro-financial assistance for Ukraine with 527 votes in favor of the motion, while 124 members of parliament were against the idea, and another 29 lawmakers abstained from voting.

“The final decision by the Council of the European Union is expected to be made in the nearest future,” the President of Ukraine Petro Poroshenko wrote on his Facebook page, Interfax-Ukraine reports. 

The Council of the European Union preliminarily approved the motion of another macr-financial assistance package for Ukraine, which is supposed to go towards the country’s efforts to stabilize its domestic economy and implement key structural reforms.

Related: Why Ukraine borrows money from EU

According to the Concil of Europe, the further payments will depend on Ukraine showing visible respect for democratic mechanisms, the rule of law, and human rights.

The conditions will be written down in a memorandum of understanding between Ukraine and the European Commission, which will be responsible for transferring the funds. Both the Commission and the European External Action Service will monitor whether or not Ukraine fulfills its obligations.

Earlier, the European Parliament, the Council of Europe and the European Commission prepared a joint statement on unfulfilled conditions and the cancellation of the third stage of the previous program. The statement says that the economic policy and financial conditions of the Memorandum of Understanding to be agreed between the EU and Ukraine will include mutual obligations to improve the governance, the administrative capacities and the institutional set-up for anti-corruption measures in Ukraine, namely concerning a verification system for asset declarations, the verification of information on corporations’ end beneficiaries and a fully operational specialized anti-corruption court based on the recommendations suggested by the Venice Commission.

Related: IMF, Venice Commission to meet over Anti-Corruption Court in Ukraine

The loans are expected to have a maximum average maturity of 15 years. The money will be divided into two tranches, while the amount of each one will be determined later on. The macro-financial assistance shall be made for a term of two and a half years, beginning on the first day after the Memorandum of Understanding with Ukraine fully enters its legal force.

Ukraine has received a total of EUR 2.81 billion of macro-financial assistance from the Union since 2014. The technical mission from the IMF came to a conclusion in November 2017, which resulted in a revision of Ukraine’s external needs for financing, pointing out an additional gap of some $4.5 billion for 2018 and 2019.

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