Ukraine Eu
EU Commits EUR 610 Million to Ukraine in MacroFinancial Assistance
The EU agrees to provide balance-of-payments support to Ukraine within its policy instrument of macro-financial assistance. The total of EUR 610 million, provided under the program, is to complement financing supplied by the IMF. The respective agreement between Ukraine, and the
EU was signed during the 16th Ukraine - EU summit, held in Brussels, Belgium, on February 25,
2013.
According to the document, the Eastern European country will receive separate loans of EUR
100, 10, 250, and 250 million over the period of two years. The first disbursement will take place after the memorandum comes into force and the European Commission approves Ukraine's progress on its commitments to the IMF. The next tranches will be provided following Ukrainian government's fulfillment of the commitments, stated in the Memorandum of Understanding, regarding public finance management, trade, energy sector, as well as tax and finance policy.
The implementation of the Macro-Financial Assistance (MFA) to Ukraine was approved in
2010, informs the official website of the European Commission. At the time, the decision stipulated the issuance of EUR 500 million. EUR 110 million had been agreed upon back in
2002.
MFA is an EU policy used to provide untied and undesignated balance-of-payments support to the Union's partner countries. The policy "complements financing provided in the context of an
International Monetary Fund's reform programme." The instrument helps combine IMF assistance end the EU efforts to stimulate structural reform in target countries.
Currently, Ukraine is negotiating a new loan from the IMF. The Eastern European country is counting on a USD 15 billion loan under the stand-by program, which has been suspended in
December 2010. In order to unlock further disbursement, Ukraine needs to change its domestic policy; namely, increase gas and heating prices for households.
The EU - Ukraine
The EU agrees to provide balance-of-payments support to Ukraine within its policy instrument of macro-financial assistance. The total of EUR 610 million, provided under the program, is to complement financing supplied by the IMF. The respective agreement between Ukraine, and the
EU was signed during the 16th Ukraine - EU summit, held in Brussels, Belgium, on February 25,
2013.
According to the document, the Eastern European country will receive separate loans of EUR
100, 10, 250, and 250 million over the period of two years. The first disbursement will take place after the memorandum comes into force and the European Commission approves Ukraine's progress on its commitments to the IMF. The next tranches will be provided following Ukrainian government's fulfillment of the commitments, stated in the Memorandum of Understanding, regarding public finance management, trade, energy sector, as well as tax and finance policy.
The implementation of the Macro-Financial Assistance (MFA) to Ukraine was approved in
2010, informs the official website of the European Commission. At the time, the decision stipulated the issuance of EUR 500 million. EUR 110 million had been agreed upon back in
2002.
MFA is an EU policy used to provide untied and undesignated balance-of-payments support to the Union's partner countries. The policy "complements financing provided in the context of an
International Monetary Fund's reform programme." The instrument helps combine IMF assistance end the EU efforts to stimulate structural reform in target countries.
Currently, Ukraine is negotiating a new loan from the IMF. The Eastern European country is counting on a USD 15 billion loan under the stand-by program, which has been suspended in
December 2010. In order to unlock further disbursement, Ukraine needs to change its domestic policy; namely, increase gas and heating prices for households.
The EU - Ukraine