Verkhovna Rada ratifies Ukraine-EU memo on EUR 1.2 bln in assistance

The Verkhovna Rada, Ukraine's parliament, has ratified a memorandum of understanding between Ukraine and the European Union on Ukraine's receipt of EU macro-financial assistance worth up to EUR 1.2 billion.

The relevant bill (No. 0063) was backed by 248 MPs with the required minimum of 226 votes, an UNIAN correspondent reported on August 25. The bill was developed to enforce international agreements signed by Ukraine in Brussels on July 23, 2020, to receive EUR 1.2 billion in macro-financial (loan) assistance from the European Union, according to the explanatory note. "Due to the negative financial and economic consequences over the spread of acute respiratory disease COVID-19, the European Parliament and the Council on May 25, 2020, made a final decision on the possibility of providing 'exclusive' macro-financial (loan) assistance to European Neighborhood Policy countries, in particular Ukraine, to support their efforts to overcome the COVID-19 crisis," the explanatory note said. It is noted that, based on the terms of borrowing under the previous four EU macro-financial assistance programs, the borrowing rate under the new program for up to 15 years is projected to be acceptable (up to 2% per annum), but its specific size will be known only after the European Commission enters the foreign market of borrowings to obtain funds that will be transferred to Ukraine at the same interest rate.