Brussels, 13 July 2022 (TDI): The European Union (EU) has approved additional macro-financial assistance (MFA) of €1 billion for Ukraine.
Today, the EU Ministers for Finance decided to provide € 1 billion of additional macro-financial assistance to Ukraine.
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The MFA has been adopted by the European Council as a matter of urgency. It aims to address the urgent and immediate needs of Ukraine. It will also ensure that Ukarine can continue performing its critical functions.
In addition, the new assistance operation will have a one-year availability period. It will be disbursed as a single installment but can be split into tranches.
The financial assistance is an international effort by international financial institutions and bilateral donors to support the Ukrainian people.
Remarks by the Czech Finance Minister
“The continuation of financial aid and providing the material is not an option, but our duty. Therefore I am very pleased that we have taken the decision of providing € 1 billion of macro-financial assistance.
The Czech finance minister also noted that, through this operation, Ukraine will have access to the funds needed to meet immediate requirements and maintain vital infrastructure.
Furthermore, once the memorandum of understanding (MoU) with the Ukrainian government is signed, the assistance and installment will be released.
In light of this, the EU is committed to supporting Ukraine. It provided an emergency MFA of €1.2 billion to Ukraine in February of this year.
Hence, the total macro-financial support since the start of the Ukrainian war now reaches €2.2 billion.
The EU-Ukraine Association agreement was signed in 2017. It not only deepens political ties but also promotes economic links and respect for common values. This agreement has provided the framework for the reform agenda.
The reforms include the fight against corruption, the rule of law, an independent judicial system, and a better business climate.
The EU has consistently supported these reforms, which aim to increase productivity and living standards.
Moreover, the EU supported Ukraine through five macro-financial assistance (MFA) operations between 2014 and 2021. It included €5 billion of loans in total.