The European Commission has provided Ukraine the first tranche of the EU macro-financial aid program equal to EUR 500 million. This amount has been provided as a loan with the interest rate of 1.25% p.a. The loan shall be re-paid in April 2033.
This tranche will be transferred to the state budget of Ukraine. Its main goal is to contribute to the structural reforms in Ukraine. The obligations that Ukraine must meet to receive macro-financial aid from the European Union include fight against corruption, steps to improve the quality of public governance and the tax system, reforms in the energy sector, reform of the social policy and corporate management at state-owned companies as well as the reform of the public finance management system.
“The Ministry of Finance is grateful to the European Union for its effective support. The Government, the Parliament and the President of Ukraine will join their efforts to implement the program of reforms to make Ukraine a good neighbor and partner for the European Union and – first and foremost – to ensure economic development and growing prosperity for each Ukrainian,” said Minister of Finance of Ukraine Oksana Markarova.
The European Parliament and the European Council approved a 4-year macro-financial aid program for Ukraine totaling up to EUR 1 billion in July this year. In September, Ukraine and the EU signed the Memorandum and the Loan Agreement. In November, the Parliament of Ukraine ratified these documents.