Ukraine receives 4.2 bln euros from EU under Ukraine Facility

MOSCOW. Aug 13 (Interfax) - Ukraine has received a tranche of 4.2 billion euros from the European Union under the Ukraine Facility program, Ukrainian media reported, quoting the Ukrainian Finance Ministry.

The tranche comprises a preferential loan of 2.7 billion euros and grant of 1.5 billion euros.

"The government will spend those funds on social programs, humanitarian affairs and other important budget programs," Ukrainian media quoted Ukrainian Prime Minister Denis Shmygal's post on a social network.

"We are continuing the reforms essential for our stability, development and the future. European partners support these efforts. We are expecting to receive another assistance trance before the end of this year," Shmygal said.

The EU has already provided around 12 billion euros under the Ukraine Facility this year. Ukraine may receive the next tranche by the end of this year, provided that all benchmarks for the country's recovery and modernization plan are met by the end of the third quarter.

The European Commission said in a statement that Ukraine had "satisfactorily fulfilled the nine reform indicators linked to the first regular quarterly payment. These conditions, covering public financial management, governance of state-owned enterprises, business environment, energy have been set out in the Ukraine Plan."

Ukraine received 4.5 billion euros under Ukraine Facility in March, another 1.5 billion euros in April and 1.9 billion euros in June.

The whole Ukraine facility is worth 50 billion euros. The Ukraine Facility budget will be 33 billion euros in loans and 17 billion euros in grants. Of the total amount, 38.27 billion euros will support the budget, 6.97 billion euros will go to the investment fund and 4.76 billion euros will be for technical and administrative support.

To launch the Ukraine Facility, the Ukrainian government came up with a plan for the country's recovery, reconstruction and modernization and specified the reforms and investment needed for its EU accession path. Funds are disbursed the plan's indicators have been fulfilled.