Ukraine receives EUR 2.5 bln of EU MFA

Ukraine on Tuesday received another tranche in the amount of EUR 2.5 billion within the exceptional eighth EU Macro-Financial Assistance program (MFA), the Ministry of Finance announced on its website.

"We are sincerely grateful to the European Union for its support to Ukraine. The allocated funds will significantly help to support economic stability in the state and ensure urgent expenses of the State Budget," Minister Serhiy Marchenko was quoted by the ministry as saying.

The total amount of Macro-Financial Assistance provided to Ukraine by the EU, from February 24 and up to today, reaches EUR 6.7 billion, the Ministry of Finance said.

It is assumed that Ukraine will receive the last tranche under the specified MFA program by the end of this year, the ministry said.

As reported, in late May-early June this year, the EU provisionally approved the provision of new emergency MFA to Ukraine for EUR 9 billion, of which EUR 1 billion was given early August. The remaining EUR 8 billion was expected to come in one tranche, but the final decision on them dragged on. One of the reasons cited is the debate over how these funds should be provided: in the form of loans or grants.

As a result, only EUR 2 billion was received in mid-October, while European Commission Vice President Valdis Dombrovskis said that the third tranche of EUR 3 billion is expected early December. Later, he said that EUR 2.5 billion will arrive at the end of November, and EUR 5 billion at the beginning of December, while the remaining EUR 3 billion of the initial EUR 9 billion is included in the new financial assistance program for Ukraine in 2023 for a total of EUR 18 billion.

In all cases, it is about loans, but, provided on preferential terms.

Tags: #ukraine #financial_assistance