EU multi-billion loan to Ukraine to be repaid for up to 40 years - European Commission document
BRUSSELS. Sept 20 (Interfax) - The European Commission published a document on Friday saying that Ukraine has up to 40 years to repay the EU macro-financial assistance loan worth up to 35 billion euros, as part of the G7's loans of up to 45 billion euros.
"The funds will be provided through a highly concessional loan, to be made available possibly still in 2024 with disbursement in regular tranches going up to the end of 2025, to be repaid over a maximum period of 40 years," the document said.
The European Commission "has proposed to establish a Ukraine Loan Cooperation Mechanism which will support G7 partners and the Union in issuing loans of up to 45 billion euros to Ukraine," the document said.
"As part of the EU contribution to these loans, the European Commission is also proposing an exceptional macro-financial assistance (MFA) loan worth up to 35 billion euros. The Ukraine Loan Cooperation Mechanism will be funded by the extraordinary revenues accumulated from the immobilization of the sanctioned Russian Central Bank assets, as well as contributions from Member States and third countries," the European Commission said.
Earlier on Friday, European Commission President Ursula von der Leyen, on a visit to Kiev, confirmed that the European Union will provide a 35-billion-euro loan to Ukraine.
According to the European Commission document, "the Macro-Financial Assistance instrument has been chosen to deliver the EU loan because it offers high flexibility and favorable terms for Ukraine, catering to the country's current situation and ensuring swift action to support the Ukrainian people."
"A key novelty is that the repayment of the exceptional MFA loan will be ensured by the new stream of funds coming from the extraordinary revenues stemming from the immobilized Russian assets," the European Commission said.
EU legislators, the European Parliament and the Council of the European Union should analyze and approve this proposal of the European Commission, the Commission said in the document.
