EU Provides EUR 1.2 Billion In Macro-Financial Assistance To Ukraine

The European Union has provided EUR 1.2 billion to Ukraine as macro-financial assistance.

A draft Memorandum of Understanding on macro-financial assistance and loan agreement were signed at a meeting in Brussels (Belgium), the Ukrainian News Agency reports.

The funds will be used to support the country's macro-financial stability.

This is the largest out of the funds that the European Union provided to 10 countries for alleviating the aftermath of the coronavirus pandemic.

The macro-financial assistance program will be extended by 12 months, and it will provide for disbursement of two tranches of EUR 600 million each to Ukraine.

Disbursement of the first tranche will be possible immediately after the memorandum of understanding and the loan agreement enter into force.

The second tranche will be disbursed after Ukraine side fulfills a number of special conditions and the European Commission completes an assessment.

The draft Memorandum of Understanding outlines eight conditions for disbursement of the second tranche of the macro-financial assistance, including increased transparency and efficiency of medical procurement; introduction of tax and customs administration reform and implementation of tax and customs reform plans; increased independence and effective functioning of the judiciary; increased transparency and efficiency of the public administration system; independence and efficient operation of anti-corruption agencies and the prosecutor's office.

As Ukrainian News Agency earlier reported, the European Parliament approved provision of EUR 1.2 billion to Ukraine as macro-financial assistance on May 15.

President Volodymyr Zelenskyy earlier authorized Minister of Finance Serhii Marchenko and the National Bank of Ukraine’s Governor Kyrylo Shevchenko to sign a memorandum and loan agreement with the European Union for disbursement of EUR 1.2 billion in macro-financial assistance to Ukraine.