Brussels puts forward $18 billion Ukraine financial aid plan for 2023

9 November 2022, 08:24 PM
Ursula von der Leyen (Photo:REUTERS/Yves Herman)

Ursula von der Leyen (Photo:REUTERS/Yves Herman)

The European Commission has proposed a $18 billion macro-financial support package for Ukraine in 2023, the commission announced via its website on Nov. 9.

The funding would come in a series of loans through EU’s Macro-Financial Assistance+ (MFA+) program.

The proposal envisages $1.5 billion per month to cover Ukraine’s short-term financial needs in 2023. The Ukrainian government estimates it would need $3-4 billion every month to cover its short-term financing needs.

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MFA+ is a flexible way of funding urgent needs that cater to the country's current situation. The loans have very long maturities – of up to 35 years, starting from 2033.

This support would be conditional on Ukraine proceeding to implement a wide range of anti-corruption and judicial reforms.

“Financial support will be framed by policy conditions, increasingly geared towards strengthening Ukraine's institutions and preparing the ground for a successful reconstruction effort, as well as supporting Ukraine's efforts on its European path," the commission said in its message.

The proposal now has to be approved by the European Parliament and the Council of the European Union, facing opposition from some EU member states, such as Hungary.

On Nov. 6, Ukrainian President Volodymyr Zelenskyy and the President of the European Commission Ursula von der Leyen discussed EU’s micro-financial support to Ukraine for 2022 and beyond.

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