• Friday, 05 July 2024

European Commission plans €18bn loan support for Ukraine in 2023

European Commission plans €18bn loan support for Ukraine in 2023
Brussels, 9 November 2022 (dpa/MIA) - The European Commission proposed on Wednesday that the European Union support Ukraine in 2023 with up to €18 billion ($18.1 billion) in loans. "Russia's escalating aggression against Ukraine continues to cause tremendous suffering and damage to Ukraine and its people," European Commission Vice-President Valdis Dombrovskis said in Brussels. "Ukraine needs our help," he added. The money should be used to pay salaries, pensions and repair critical infrastructure including energy and health facilities, Dombrovskis said. The total amount is equivalent to EU financial assistance of up to €1.5 billion per month, with the commission aiming for the first disbursement in January. The provided support would be in the form of "long-term loans on highly concessional terms," Dombrovskis said. Ukraine would have to start repaying the loans in 2033 over the course of up to 35 years, a press release said. The commission wants to borrow the necessary money on the capital markets to fund the loans, using headroom in the current EU budget to provide guarantee for the credits, and EU member states are to cover the interest costs. This would require "very targeted changes" in the EU's financial legislations, Dombrovskis said. Raising already promised money for Ukraine has proved difficult in recent months with EU countries disagreeing on its financing, with Hungary voicing opposition to new EU aid. "I'm confident that by the end of the day, like always, we can find a positive solution," EU Budget Commissioner Johannes Hahn said on Wednesday. The EU's 27 member states and the European Parliament have to approve the proposed aid package before it can come into force.