EU approves loan to Ukraine under macro-financial assistance program

The Council of the European Union has announced today the decision to allocate an additional EUR 1 billion of additional macro-financial assistance to Ukraine, as a matter of urgency, which will be directed to the country's priority needs, Report informs, citing the European Council's website.

"The Council today decided to provide €1 billion of additional macro-financial assistance (MFA) to Ukraine, as a matter of urgency. Together with the emergency MFA of € 1.2 billion disbursed earlier this year, the total macro-financial support from the EU to Ukraine since the start of the war now reaches € 2.2 billion and it is expected to increase further in the coming months," the document reads.

The MFA adopted today aims to address the immediate and most urgent funding needs of Ukraine and to ensure the Ukrainian state can continue to perform its most critical functions. It takes the form of a highly concessional long-term loan. It will have an availability period of one year and will be disbursed as a single installment, which may be split into one or more tranches. This new MFA operation is part of the extraordinary international effort by bilateral donors and international financial institutions to support Ukraine at this critical juncture.