EU must provide guarantees for Ukraine to receive IMF funds, - Dombrovskis
European Commissioner for Economic and Productivity Issues Valdis Dombrovskis stated that new IMF payments depend on the EU's political and financial commitments to support Ukraine.
This was reported by Censor.NET with reference to Bloomberg.
Dombrovskis discussed Ukraine's $65 billion financial deficit and its military needs with IMF Managing Director Kristalina Georgieva.
According to him, the IMF, which approved a $15.6 billion program in 2023, needs "a credible path forward and clear political commitments from the EU" to approve a new aid package. "It has to be more than just our words: 'Yes, we will do whatever it takes, and now we are just discussing options,'" Dombrovskis stressed.
Concerns from Belgium
It is expected that new support from the EU—in the form of a so-called "reparation loan" from frozen Russian assets—will allow the IMF to unblock approximately $8 billion over three years. However, the implementation of the plan is being hampered by the position of Belgium, which is demanding additional legal guarantees regarding the use of approximately €140 billion in Russian assets frozen on its territory.
The European Commission is continuing negotiations with Belgium, while also considering alternative options, including raising funds on the markets to provide repayable loans. However, Dombrovskis warned that such loans could pose risks to the sustainability of Ukraine's debt.
What is a reparations loan?
Reparation credit or loan is a new financial instrument that is currently being actively discussed in the EU and G7 countries as a mechanism to help Ukraine by using frozen Russian assets.
