EU Council agrees to provide Ukraine with €4.2 billion under Ukraine Facility program
On August 6, the Council of the European Union approved the allocation of 4.2 billion euros within the Ukraine Facility macro-financial aid program, announced the Hungarian Presidency of the Council of the EU.
They noted that this decision supports the macro-financial stability of Ukraine and the functioning of its state administration.
The Ministry of Finance of Ukraine noted that the funds will be directed to priority social and humanitarian expenditures of the state budget.
"I am grateful to the European Union for the positive assessment of the work done by the [Ukrainian] government and for understanding the needs of Ukraine. The EU is the largest donor of external financing since February 24, 2022. International aid plays a decisive role in ensuring budget liquidity and maintaining macro-financial stability in conditions of uncertainty," commented the Minister of Finance of Ukraine, Sergii Marchenko.
The press service of the Council of the EU stated that Ukraine has fulfilled the necessary conditions and reforms provided for in the Ukrainian reform plan (Ukraine Plan) for receiving funds.
These reforms cover the management of public finances, the management of state-owned enterprises, the business environment, energy and demining.
The Council of the EU also emphasized the importance of allocating funds as soon as possible due to the difficult financial situation in Ukraine.
What is Ukraine Facility?
Ukraine Facility is a program of multi-year financial assistance to Ukraine from the EU. It provides for the provision of 50 billion euros during 2024-2027. Of this amount, 39 billion euros will be allocated to the state budget to strengthen macro-financial stability. The rest is a special investment instrument for covering risks in priority sectors, covering interest on loans, etc.
At the beginning of February, all 27 leaders of the European Union agreed to this program, although, according to the media, the EU had to make compromises in order to persuade Hungary to do so.
The government of Ukraine, in turn, adopted a plan to fulfill the conditions for receiving this assistance. It concerns European approaches to the reform of public administration, the fight against corruption, and economic and sectoral reforms in various fields, from the energy sector to the agricultural sector. In addition, the document prescribes "cross-cutting directions," such as the "green" transition, digitalization, and European integration.