EU will allocate 5 billion euro aid package to Ukraine
The European Union is preparing to provide a new financing package for Ukraine in the amount of 5 billion euros. The European Commission will propose a loan package next week.
As Censor.NET informs, this is reported by Bloomberg with reference to the words of EU diplomats familiar with the plan.
The money is part of a larger aid package, worth 9 billion euros, promised by Europe last May. This issue is still under review, due to disagreements between the commission and member states over the details of the aid program.
Germany, as the largest donor, still disagrees with the commission, as Berlin insists on providing Ukraine with grants that will not have to be repaid, arguing that the increase in debt would further undermine the economy, which is close to default, the publication said. Instead, the European Commission insisted on the provision of soft loans borrowed from the markets, with higher guarantees provided by the member states in case of default of the Ukrainian economy.
According to the EU diplomat, during the meeting only Hungary refused to support the decision on aid to Ukraine, the publication writes.
While Germany and all other member states except Hungary have agreed to provide an additional €5 billion in macro-financial assistance to Ukraine, the remaining €3 billion is still under discussion. Member States differ on whether the money should be given in the form of grants or loans.
"We are continuing work on the remaining EUR 3 billion from the EUR 9 billion macro-financial assistance package for Ukraine," the representative of the European Commission told the publication.
EU finance ministers are expected to adopt a political declaration when they meet next week in Prague. The package must be approved by the member states and the European Parliament.
