17 Mar 2023 17:08

EU intends next week to allocate another tranche of 1.5 bln euros in financial assistance to Kiev

MOSCOW. March 17 (Interfax) - The European Union plans to allocate the second tranche of 1.5 billion euros for macro-financial assistance (MFA) in 2023 to Ukraine next week, 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, posted on social media on Friday.

"We expect a second MFA payment next week of 1.5 billion euros in emergency support to help Ukraine meet urgent needs," Dombrovskis posted.

In December 2022, the EU Council approved a decision on MFA to Ukraine for 2023 at 18 billion euros. The funds are provided with a 10-year grace period. In January, Kiev received the first tranche of 3 billion euros. Subsequent payments are remitted monthly at 1.5 billion euros starting in March.

The European Commission believes that with the assistance of the funds that Ukraine is be able to continue paying salaries and pensions, and maintain the functioning of basic public institutions, including hospitals, schools, and others. EU assistance should also allow the country to rebuild infrastructure and maintain macroeconomic stability.