EU Council approved €35 billion loan to Ukraine

The EU Council has agreed on a package of financial assistance to Ukraine (Macro-Financial Assistance - MFA), including an exceptional macro-financial assistance loan of up to €35 billion, as well as a credit cooperation mechanism that will support Ukraine in repaying loans of up to €45 billion provided by the EU and G7 partners.

“The financial assistance is aimed at immediately meeting Ukraine's urgent financing needs, which have increased due to russia's increased aggression against Ukraine,” the statement said.

The repayment of the exceptional loan, as well as loans provided by partners under the Emergency Revenue Assistance (ERA) initiative, will be provided by the proceeds of $300 billion of frozen assets. 

“The MFA loan of up to €35 billion is the EU's contribution to the G7 loan of up to €45 billion,” the European Commission said.

In order to ensure that the macro-financial assistance reaches Ukraine as soon as possible, the Member States agreed that if the European Parliament adopts the Commission's proposal without changes, the Council will do so promptly.

The MFA loan will be available as early as 2024 with disbursement in 2025. It will be repaid over 45 years.

Source: European Council