26 Jul 2022 18:22

Ukraine to receive nearly 1.6 bln euros from EIB

BRUSSELS. July 26 (Interfax) - The European Investment Bank (EIB) will allocate 1.59 billion euros to Ukraine under a European Union budget guarantee in order to assist the country in rebuilding critical infrastructure, the European Commission (EC) said on Tuesday.

"The EIB's support will maintain the financial viability of strategic public sector companies and enable them to carry out urgent repairs to critical infrastructure, resume basic services and meet other urgent needs of the Ukrainian people, including those who have been forced to flee their homes," Valdis Dombrovskis, Executive Vice President of the European Commission responsible for the Euro and Social Dialogue, and in charge of Financial Stability, Financial Services and the Capital Markets Union, said in a statement.

Dombrovskis assured that, "the European Commission will continue to work with EU member countries and our international partners in order to support Ukraine at all levels for as long as it takes."

According to a press release on the EC's website, guarantees from the EU budget are supporting the EIB funding to Ukraine.

"This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of 668 million euros fully disbursed within a month. Like the first one, the new financing is offered at favorable terms, including long tenors," the EC said in the press release.

"Immediate financial assistance totaling 1.05 billion euros will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy-efficiency measures in preparation for the cold season," according to the press release.

"Resuming implementation of the EIB-financed projects in Ukraine totaling 540 million euros, the selected projects will cover energy, energy efficiency, roads, transport, education, and infrastructure, as well as reconstruction and recovery programmes. The exact timing of the disbursements will depend on the state of advancement of the underlying projects," according to the press release.