Brussels, 2 August 2022 (TDI): The European Commission gives Ukraine’s new €1 billion Macro-Financial Assistance (MFA) operation with its first installment on 1st August. The distribution of the second tranche will be on August 2.
Today we disbursed the first €500 million of a new €1 billion Macro-Financial Assistance package for Ukraine.
This is part of our continued effort to help Ukraine address its immediate financial needs following the brutal war of aggression started by Russia.#StandWithUkraine
— European Commission 🇪🇺 (@EU_Commission) August 1, 2022
It adds to the assistance currently being offered by the EU, which includes a €1.2 billion emergency MFA loan that was disbursed during the first half of the year.
The two program strands added together, increase the total MFA assistance provided to Ukraine since the start of the war to €2.2 billion.
The EU and the international community are making an unprecedented effort to assist Ukraine in meeting its immediate financial needs in the wake of Russia’s attack. The additional MFA of €1 billion is a part of that effort.
In addition to its other programs, most notably NextGenerationEU and SURE, the Commission also borrows money from capital markets on behalf of the EU to fund the MFA.
In its funding proposal for the second half of 2022, the Commission accounts for the potential borrowing for Ukraine.
Aid for The Republic of Moldova
The Republic of Moldova has also received €50 million in macro-financial assistance (MFA) from the European Commission on behalf of the EU of which €15 million are in grants and €35 million in long-term loans with favorable conditions made.
The Russian war against Ukraine has had a huge negative impact on Moldova’s economy, compounding already significant problems and imbalances.
The pandemic in 2020 also contributed to a severe recession in Moldova. Despite being one of Europe’s poorest nations, Moldova has taken in the most refugees from Ukraine per person.
Additionally, Moldova continues to uphold the prerequisites of respecting human rights, having functional democratic institutions, and upholding the rule of law, in addition to having a successful track record of carrying out the ongoing IMF program.
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