EU approves disbursement of €500 million in Macro-Financial Assistance to Ukraine

Poroshenko 2018.jpg

Mr Petro POROSHENKO, President of Ukraine. Copyright: No commercial use. Credit ‘The European Union’

This article is brought to you in association with the European Commission.


The European Commission, on behalf of the EU, has today approved the disbursement of the first €500 million of the new Macro-Financial Assistance (MFA) programme to Ukraine.

With this disbursement, the total Macro-Financial Assistance extended to Ukraine by the EU since 2014 will reach €3.3 billion, the largest amount of such assistance directed at any non-EU country.

Valdis Dombrovskis, Commission Vice-President responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “The European Union has shown constant political and financial support to Ukraine. Today’s European Commission decision on disbursement comes at a crucial moment when Ukraine and its people face a new aggression from Russia and need to see solidarity from international partners. Such aggressive behaviour is not acceptable in today’s Europe.”

Pierre Moscovici, Commissioner in charge of Economic and Financial Affairs, Taxation and Customs, added: “Ukraine has fulfilled the policy commitments agreed with the EU for the release of the first payment under the Macro-Financial Assistance programme. This is an important and encouraging signal that Ukraine continues to deliver on reforms despite the current security environment and the upcoming electoral cycle.”

Under the new MFA programme approved by the European Parliament and the Council in July 2018, up to €1 billion is available to Ukraine. The programme helps Ukraine cover its financing needs and supports the implementation of a wide-ranging structural reform agenda. The MFA funds are available in the form of low-interest long-term loans, conditional on the implementation of specific policy measures agreed in the Memorandum of Understanding.

Ukraine has fulfilled the policy commitments agreed with the EU for the release of the first payment under the programme. These included important measures to step up the fight against corruption, improve transparency of company registers, enhance the predictability of the tax environment and strengthen the governance of state-owned enterprises. Ukraine has also agreed with the International Monetary Fund (IMF) on a new Stand-by Arrangement, which will replace its previous programme under the IMF’s Extended Fund Facility, thus continuing the country’s engagement with the IMF. The parliamentary adoption on 23 November of a budget for 2019, which IMF considers satisfactory, has been an important step towards the endorsement of the new programme by the IMF Executive Board, expected in December.

The EU will continue working with the Ukrainian authorities on its reform agenda, including in those areas related to the next disbursement of the MFA programme. These include further measures in the fight against corruption, such as progress in making the High Anti-Corruption Court of Ukraine operational, public financial management, the continuation of reforms of the energy and banking sectors and reforms in the area of social policy. The Commission will continue to follow developments closely and monitor implementation.

Background

Macro-Financial Assistance (MFA) is part of the EU’s wider engagement with neighbouring countries and is intended as an exceptional EU crisis response instrument. It is available to the EU’s neighbouring countries experiencing balance-of-payments problems. It is complementary to assistance provided by the IMF. MFA loans are financed through EU borrowing on capital markets. The funds are then on-lent with similar financial terms to the beneficiary countries. MFA grants come from the EU budget.

In March 2018, in response to Ukraine’s request, the Commission proposed a new MFA programme for up to €1 billion. This proposal was adopted by the European Parliament and the Council in July 2018. The Memorandum of Understanding was signed by Ukraine and the European Commission, on behalf of the EU, in September 2018 and subsequently ratified by the Parliament of Ukraine.

Ukraine has so far benefitted from a total of €2.8 billion worth of EU MFA loans since 2014. This includes €1.6 billion disbursed in 2014-2015 as part of two earlier MFA operations and €1.2 billion in 2015-2017 as part of a third operation. In addition to MFA, the EU supports Ukraine through several other instruments, including humanitarian aid, budget support, technical assistance and blending facilities to support investment. Overall, the EU and European Financial Institutions have mobilised over €12 billion in loans and 1 billion in grants since 2014 to help Ukraine stabilise its economy, carry out comprehensive reforms and improve the livelihoods of its citizens.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Coronavirus: the truth against all myths

EU-US resume trade negotiations under the spell of NSA surveillance

Monday’s Daily Brief: drug-resistant diseases, Venezuelan refugees, fighting in Tripoli, and hate speech

Time to act together: Von der Leyen at the European Parliament July plenary

Margrethe Vestager, European Commissioner for Competition, in Brussels - Berlaymont, last week. (Copyright European Union, 2017 / Source: EC - Audiovisual Service / Photo: Lukasz Kobus)

Amazon, Luxembourg and Ireland hit by EU’s latest turn of the screw over competition

Rule of law in Hungary: Parliament should ask Council to act, say committee MEPs

Syria still suffering ‘staggering levels’ of humanitarian need, Security Council hears

2030 development agenda: Major breakthrough for world of work

The hidden risks nature loss poses for businesses

iSting: Change Europe with your Writing

Is there a de facto impossibility for the Brexit to kick-start?

Brexit and migration dominates the debate on October’s EU summit

UN rights chief welcomes new text to protect rights of peasants and other rural workers

Draghi reserved about Eurozone’s growth prospects

EU report: Implementation of reforms continues to bring EU and Ukraine closer together

JADE Spring Meeting 2015: a step forward for Youth Entrepreneurship

Why the Greeks forgave Tsipras’ pirouettes around austerity and voted again for SYRIZA

UN agencies urge Brunei to repeal new ‘extreme and unjustified’ penal code

This is what great leadership looks like in the digital age

The Swiss will pay dearly for voting out fellow Europeans

Dignified health for all who live here

Our global system has spun out of control. Here’s how to rebalance it

COVID-19: Commission presents guidelines for border measures to protect health and keep goods and essential services available

Trade in fake Italian goods costs economy billions of euros

Portugal: Budget MEPs back €4.66 m in job-search aid for 730 redundant workers

European Commission determined to conclude EU-Mercosur trade deal this year despite French concerns

G20 LIVE: “Our response needs to be robust…otherwise we will only find the fire we are trying to put out”, UN Secretary General Ban Ki-moon just lit up G20 in Antalya Turkey

EU to pay a dear price if the next crisis catches Eurozone stagnant and deflationary; dire statistics from Eurostat

EU-US relations on the dawn of the Trump era

Yesterday’s “jokes” and sarcasm by Digital Single Market’s Vice President Ansip on EU member states’ right to protect their telco markets

EU Council approves visa-free travel for Ukraine and cement ties with Kiev

Catalonia’s vote for independence and the power of symbols

How the EU crisis hit countries saved the German and French mega-banks from bankruptcy and still pay the costs

Here are 6 big ideas to help the environment

Theresa May’s global Britain against Philip Hammond’s Brexit fog

Here’s what happened when one Guatemalan town went to war on plastic waste

First peaceful transfer of power in DR Congo ‘an extraordinary opportunity’ for advancing rights

5 steps that could end the plastic pollution crisis – and save our ocean

A free press is ‘cornerstone’ for accountability and ‘speaking truth to power’: Guterres

Smart cities must pay more attention to the people who live in them

Syria: A bloody tracer of Trump – Putin rapprochement

Illicit trade endangers the environment, the law and the SDGs. We need a global response

Latin America is a mass-transit powerhouse. But it needs fine-tuning

“A divided Europe is not in China’s interests”, Ambassador Zhang of the Chinese Mission to EU welcomes Brussels

Finnish Prime Minister calls for a more united EU of concrete actions

EU and China discuss trade and economic relations

EU prolongs economic sanctions on Russia by six months

EP leaders call for negotiations on upgraded Transparency Register to continue

Viet Nam shows how you can contain COVID-19 with limited resources

The Italian ‘no’ and France’s Fillon to reshape Europe; Paris moves closer to Berlin

A Sting Exclusive: EU Commissioner Mimica looks at how the private sector can better deliver for international development

The ethical dilemmas of medicine

Joint EU-U.S. statement following the EU-U.S. Justice and Home Affairs Ministerial Meeting

The Amazon is reaching a dangerous tipping-point. We need to scale solutions now if we have any chance of saving it

The ethics of the Medical Technology Civilisation era

This air taxi uses 5G to ‘see’ around corners

EU budget: Commission helps prepare new Cohesion programmes with Regional Competitiveness Index and Eurobarometer

Systems leadership can change the world – but what exactly is it?

Resettlement needs set to rise to 1.4 million people in 2019, UN refugee agency reports

Killings and violence targeting ethnic group in DR Congo ‘may amount to crimes against humanity’

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s