Ukraine receives another 1.5 bln euros from EU under Ukraine Facility

MOSCOW. April 27 (Interfax) - Ukraine received 1.5 billion euros of external financing from the European Union to cover its budget deficit on April 25, Ukrainian media reported Prime Minister Denis Shmygal as saying.

"Ukraine has already received about $12 billion of external financing to cover the deficit of our budget since the beginning of the year. Yesterday 1.5 billion euros was received from the EU under the new Ukraine Facility. Also, we will receive about $8 billion of budget support as part of the aid package from the United States," Shmygal said on his Telegram channel on Friday.

These funds will help Ukraine finance healthcare services and social programs and pay wages to doctors and teachers, he said.

The EU announced the disbursement of 1.5 billion euros under the 50 billion euro Ukraine Facility on April 24. The facility will include 33 billion euros in loans and 17 billion euros in grants, with 38.27 billion euros earmarked for budget support, 6.97 billion euros for an investment fund and 4.76 billion for technical and administrative support.

Ukraine received 4.5 billion euros under this instrument in March and, after receiving 1.5 billion euros in April, is expected to receive another 1.9 billion euros in May. Subsequently, the funds will be disbursed quarterly based on fulfillment of targets.

To launch the Ukraine Facility, the country's government worked out a plan for recovery, reconstruction and modernization, and elaborated the specifics of reforms and investment needed to join the EU. Ukraine and the EU signed a loan agreement and memorandum on financing for the country under the Ukraine Facility for 2024-2027 on March 12.