European Commission disburses 3 bln euros out of 18-bln-euro macro-financial assistance assigned to Ukraine in 2023

BRUSSELS. Jan 17 (Interfax) - The European Commission disbursed 3 billion euros to Ukraine on Tuesday as the first tranche of 18-billion-euro macro-financial assistance in 2023.

"The Commission has today disbursed a first instalment of 3 billion euros of the up to 18 billion euro macro-financial assistance (MFA+) package for Ukraine," the European Commission said in a press release.

Future payments to Ukraine under the MFA+ instrument of 1.5 billion euros per month will continue as of March, it said.

The European Commission is expecting Ukraine to spend the money on further payment of salaries and pensions, alongside the operation of primary social establishments, including hospitals, schools and homes for displaced persons. The assistance will also enable Ukraine to restore infrastructure and to maintain macro-economic stability.

In December 2022, the Council of the EU approved a decision on 18 billion euros in macro-financial assistance to Ukraine for 2023.

The amount to be lent to Ukraine in 2023 will be 18 billion euros, and the loans will have a 10-year grace period, the council's statement then said. EU members will cover the bulk of interest expenses. Loan guarantees will be provided either from the EU budget or by EU members.

Ukraine will need to repay the highly concessional loans over up to 35 years, starting from 2033, the European Commission said.