EU Council approves first tranche of loan to Ukraine
Illustrative photo (Getty Images)
Kyiv is set to receive approximately €4.2 billion after the European Council approved the first regular disbursement of grants and loans under the EU's Ukraine Facility Fund, citing the European Council.
The fund is aimed at supporting Ukraine's macro-financial stability and the functioning of its public administration.
Today's Council decision confirmed that Ukraine has met the necessary conditions and implemented the reforms outlined in Ukraine’s plan to qualify for these funds.
The reforms cover key areas such as public financial management, state-owned enterprises, the business environment, energy, and landmine clearance. The Council also emphasized the importance of timely disbursement of funds given the challenging fiscal situation in Ukraine.
Ukraine’s plan outlines the country’s intentions for recovery, reconstruction, and modernization, as well as the reforms it intends to implement as part of its EU accession process over the next four years.
In May 2024, the EU Council already recognized that Ukraine's plan meets the preliminary conditions to receive up to €50 billion in support under the Ukraine Facility Fund.
Ukraine Facility Program
In February 2024, the European Parliament approved the regulation for the Ukraine Facility Program, which provides for EU support to Ukraine totaling €50 billion from 2024 to 2027. In June of that year, a loan agreement was signed between Ukraine and the European Union under this program.
On July 17, the European Commission approved a €4.2 billion tranche for Ukraine under the Ukraine Facility. Following this decision by the EU Council, the total funding for Ukraine under the program will reach €12 billion.
Prime Minister Denys Shmyhal reported that Ukraine expects to receive this tranche in September 2024. He also said that Kyiv successfully met the indicators for the second quarter of 2024 under the Ukraine Facility program.
