Brussels, 14/04/2014 (Agence Europe) - The Foreign Affairs Council has endorsed additional macroeconomic aid for Ukraine of €1 billion (see EUROPE 11056).
Approved under a fast-track procedure, the EU's macro-financial assistance will be provided in the form of loans with a maximum maturity of 15 years. It will contribute to covering Ukraine's urgent balance-of-payments needs as identified in the governmen's economic programme supported by the IMF (see EUROPE 11048) and comes on top of €610 of EU aid that has already been granted.
The EU aid will be conditional on the fulfilment of economic policy and financial conditions, focusing on structural reforms and sound public finances, to be laid down in a memorandum of understanding (MOU) to be agreed between the EU and Ukraine, says the Council in a press release.
The aid will be released in two equal instalments of €500 million, unless exceptional circumstances require its disbursement in a single tranche. It is hoped the first tranche will be paid in May (before the Ukrainian general election on 25 May). The release will be conditional on the implementation of measures contained in the MOU and in the IMF's non-precautionary credit arrangement, as well as on Ukraine's respect for effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and for human rights. Disbursement of the EU assistance can take place as soon as the Ukrainian authorities and the IMF have agreed on an economic programme supported by a financing arrangement.
The Ukrainian government has been exiled from the financial markets since last year. (MB)