Ukraine expects to receive the first tranche of 4.5 billion euros from the new macro-financial assistance package from the European Union in March.
This was stated by the First Deputy Prime Minister and Minister of Economy of Ukraine, Yulia Sviridenko, as reported by the Ministry of Economy press service.
“The vote on the Ukraine Facility in the European Council is a powerful signal of unwavering support for Ukraine from its partners. The next stage will be defining the final terms of the program through a trialogue between the European Council, the European Commission, and the European Parliament. The final regulation is expected to be adopted by the European Parliament during the plenary session scheduled for February 26-29, 2024. We expect to receive the first payment of 4.5 billion euros in March. The government is currently working on the corresponding agreement for transitional financing jointly with European partners. We are grateful to our allies for their assistance and trust in Ukraine”, noted Sviridenko.
The decision of the European Council also reflects a positive assessment of the preparation of the Plan for the Ukraine Facility, coordinated by the Ministry of Economy. After the regulation is approved by the European Parliament, the relevant final terms of the program will be incorporated into the Plan. Once the document is approved by the government, the Plan will be submitted for consideration to the European Commission.
The Plan for the Ukraine Facility involves implementing structural reforms in the public sector, carrying out a series of economic reforms aimed at developing the business climate and entrepreneurship, as well as taking steps to develop priority sectors that can ensure rapid economic growth.
Support under the Ukraine Facility program of the European Union will be provided quarterly based on the implementation of specified criteria for carrying out the planned reforms.
Recall that the European Union’s Ukraine Facility program envisages providing Ukraine with 50 billion euros over the period 2024-2027. Out of this amount, 39 billion euros will be directed to the state budget to strengthen macro-financial stability.
The program also includes a special investment instrument to cover risks in priority sectors, with a volume of 8 billion euros. Financing under this instrument will be available to investors through the EBRD, EIB, and other international institutions. It is expected that the implementation of projects under this instrument will attract an additional 30 billion euros in investments.
Additionally, the budget of the Ukraine Facility program includes a separate technical support component, including funds to cover interest on loans within the Ukraine Facility, amounting to 3 billion euros. On February 1, at a special summit in Brussels, the leaders of the European Union unanimously agreed to provide Ukraine with 50 billion euros in assistance over the next four years.
Photo: Open sources
