The European Commission, on behalf of the EU, disbursed € 1 billion of a new macro-financial assistance (MFA) operation for Ukraine. A decision on this new exceptional macro-financial assistance was adopted by the European Parliament and the Council on 12 July 2022.
This additional €1 billion of macro-financial assistance is part of the EU's extraordinary efforts, together with the international community. The goal is to help Ukraine meet its immediate financial needs following Russia's unprovoked and unjustified aggression. This is the first part of an exceptional macro-financial assistance package worth up to €9 billion announced in the Commission Communication of 18 May 2022. This package was approved by the European Council on 23-24 June 2022. In the first In the middle of the year, an emergency MFA loan of PLN 1,2 billion was disbursed euro. Together, these two parts of the program provide complete MFA support for Ukraine from the beginning of the war in the amount of EUR 2,2 billion.
These are long-term loans on favorable terms
MFA funds were made available to Ukraine in the form of long-term loans on favorable terms. The aid supports Ukraine's macroeconomic stability and overall resilience in the context of Russia's military aggression and the economic challenges it entails. As a further expression of solidarity, the EU budget will cover the interest costs on this loan. As with all previous MFA loans, the Commission borrows funds in international capital markets and transfers the proceeds under the same conditions to Ukraine. The loan to Ukraine is secured with 70% of the value set aside from the EU budget.
This financial aid complements the unprecedented support provided to date by the EU, in particular humanitarian, development and defense aid. As well as suspending all import duties on Ukrainian exports for one year or other solidarity initiatives. The aim is, for example, to eliminate bottlenecks in transport, such as the export of cereals from Ukraine.
Source: European Commission of the EU
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