Council of EU endorses disbursement of 4.2 bln euros to Kiev from Ukraine Facility

BRUSSELS. Aug 6 (Interfax) - The Council of the European Union has endorsed the first regular payment of nearly 4.2 billion euros in grants and loans from the EU's Ukraine Facility, the Council said in a communique published on Tuesday.

"In a decision adopted today, the Council concluded that Ukraine had satisfied the necessary conditions and reforms envisaged in the Ukraine Plan for receiving the funds, which will be disbursed from the Ukraine Facility. These reforms cover public financial management, governance of state-owned enterprises, business environment, energy and demining," it said.

The Council stressed the importance of allocating the money as soon as possible, given the difficult fiscal situation in Ukraine, which has to maintain its macro-financial stability and the functioning of its public administration.

The Ukraine Plan sets out Ukraine's intentions regarding its recovery, reconstruction, and modernization and the reforms it plans to undertake as part of its EU accession process in the next four years, it said.

The Council concluded back in May that the Ukraine Plan fulfilled the preconditions for Ukraine to receive up to 50 billion euros in support under the Ukraine Facility.

The Ukraine Facility is an instrument under which Ukraine is to receive up to 50 billion euros in grants and loans to support the country's recovery, reconstruction, and modernization in 2024-2027. Of the total amount, roughly 32 billion euros is to be spent on supporting reforms and investment outlined in the Ukraine Plan. Payments are made conditional upon the achievement of certain benchmark indicators.