EU releases €500m in macro-financial assistance for Ukraine

18 Jun 14
The European Commission has given €500m to Ukraine, the first loan from its second Macro-Financial Assistance (MFA II) programme.

It follows a disbursement of €100m released in May under the earlier MFA I programme. The objective of both programmes is to move the country’s troubled economy towards stability.

Total EU MFA support for Ukraine comes to €1.61bn, with €1.01bn remaining after yesterday’s disbursement. They are part of a wider package of support announced by the commission in March.

Olli Rehn, European Commission vice president for economic and monetary affairs, said: ‘The European Union is providing essential support for Ukraine’s efforts to address its major economic challenges.

‘[Yesterday’s] disbursement is a further concrete sign of European solidarity towards the people of Ukraine. It is vital that Ukraine seizes this opportunity to take forward reforms to deliver budgetary stability, sustainable growth and job creation.’

The EU’s MFA complements the funds provided by the International Monetary Fund and other donors to bring to the fore stabilisation and reform programmes recently launched by the Ukrainian authorities.

All the assistance aims to reduce the economy’s short-term balance of payments and fiscal vulnerabilities.

Beyond today’s disbursement, subsequent EU payments will be conditional on the implementation of specific economic policy actions. The conditionality linked to this programme focuses on public financial management and anti-corruption, trade and taxation, the energy sector and financial sector reforms.

 

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