Ukraine and the EU to sign macro-financial assistance program for €1 billion
As stated in the European Commission’s message, Ukraine and the European Union will sign a program of macro-financial assistance for €1 billion this week. On September 13, the Vice President of the European Commission, Valdis Dombrovskis will arrive in Ukraine to sign the deal.
He will also hold negotiations with the Prime Minister of Ukraine, Volodymyr Groysman and Minister of Finance of Ukraine Oksana Markarova, and will take part in the Yalta European Strategy forum during his two-day visit.
This is the fourth large-scale program of macro-financial assistance to Ukraine. The first two were established in 2014 and 2015, in which the European Commission allocated €1.61 billion to Ukraine. Ukraine received another €1.2 billion under the third program in 2015 and 2017. The last third tranche was never received because Kyiv’s authorities failed to complete EU requirements.
The new macro-financial assistance program consists of two payments within 2.5 years. The aim of the loan is to support economic stabilization and a program of structural reforms, adding to the funds provided by the IMF and other donors. The allocation of macro-financial assistance is connected to the implementation of the International Monetary Fund program, which has sent its mission to Kyiv.
The first European tranche of 500 million euros might be allocated in September if the IMF loan assistance program is resumed.