Financial support to Ukraine: EU disbursed €500 mln and €250 mln in June

Following its commitments with regard to financial support to Ukraine, in June EU announced allocations in the frameworks of the macro-financial assistance and state-building contract.

?????????????????????????????????On June 17, European Commission, on behalf of the EU, today disbursed €500 million to Ukraine, the first loan tranche from the new EU Macro-Financial Assistance (MFA II) programme for the country.

This follows a disbursement of €100 million on 20 May from the previously agreed MFA programme (MFA I). The objective of both MFA programmes is to support Ukraine economically and financially in the current critical stage of its development.

Total EU MFA support for Ukraine comes to €1.61 billion, with €1.01 billion remaining after today’s disbursement.

The EU’s MFA complements the resources made available by the International Monetary Fund (IMF) and other donors in the context of the stabilisation and reform programme recently launched by the Ukrainian authorities. The assistance aims to reduce the economy’s short-term balance of payments and fiscal vulnerabilities.

In addition, on June 12 the EU disbursed €250 million of non-reimbursable assistance to Ukraine. The payment is the first, fixed tranche of the State Building Contract (SBC) which is worth up to €355 million in total.

The SBC is a major EU initiative to support Ukraine in addressing the fundamental problems that have hampered reform and European integration in the past. There is a particular emphasis on supporting Ukraine’s fight against corruption.

Macro-financial assistance and state-building contract are part of a wider package of support for Ukraine announced by the European Commission on 5 March and endorsed by EU leaders at the European Council of 6 March. The total amount of the EU support reaches € 11 billion.