Ukraine and the EU Signed Memorandum and Loan Agreement on EUR 18 billion Macro-Financial Assistance

Today, on January 16, the Memorandum of Understanding and the Loan Agreement between Ukraine and the European Union on Macro-Financial Assistance to Ukraine in the amount of EUR 18 billion were signed.

The agreements were signed by Minister of Finance of Ukraine Sergii Marchenko and Governor of the National Bank of Ukraine Andrii Pyshnyy on behalf of Ukraine and by Executive Vice President of the European Commission Valdis Dombrovskis on behalf of the EU.

It is expected that the first tranche under the Program in the amount of EUR 3 billion will be received by the end of January this year.

“We highly appreciate our cooperation with the European Union and are sincerely grateful for the support of Ukraine in the conditions of a full-scale war. During the systematic destruction of civilian and critical infrastructure by russia, Ukraine counts on support from partner countries and needs a stable and predictable financing to cover social and humanitarian needs of the State Budget. The Macro-Financial Assistance of the European Union in the amount of EUR 18 billion will significantly ensure the financing of priority budget expenditures and the smooth functioning of the Ukrainian economy this year”, - Sergii Marchenko noted.

According to the agreements, the concessional loan funds will be directed to the State Budget of Ukraine during 2023 in equal manner, taking into account the performance by Ukraine of the conditions agreed by the parties.

The macro-financial assistance funds will be directed to the financing priority social expenditures of the state budget and will contribute to maintaining financial and economic stability in Ukraine.