It is expected that the loan in the sum of one billion euro will cover the financial needs of Ukraine for the next two and a half years.
The loan is allocated for the stabilization of the economy and holding of the structural reforms as the addition to the IMF financing and other international donors.
'The further disbursements will be conditional on Ukraine respecting democratic mechanisms and the rule of law and guaranteeing respect for human rights. They will be subject to economic policy and financial conditions, focusing on structural reforms and sound public finances and including a timeframe for their fulfillment. The conditions will be laid down in a memorandum of understanding between Ukraine and the Commission', the Council noted.
The European Commission is appointed as the responsible for the allocations. It along with the European External Action Service will control the fulfillment of the loan's terms by Ukraine.
After each transferred allocation, the European Commission is obliged to provide the public report on the execution of the terms, particularly, the events on the fight against corruption.
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.