Following the European Council meeting of 20-21 October 2022, the Commission has proposed an unprecedented support package for Ukraine of up to €18 billion for 2023. This will come in the form of highly concessional loans, disbursed in regular installments as of 2023.
This stable, regular and predictable financial assistance – averaging €1.5 billion per month – will help cover a significant part of Ukraine’s short-term funding needs for 2023, which the Ukrainian authorities and the International Monetary Fund estimate at €3 to €4 billion per month. The support put forward by the EU would need to be matched by similar efforts by other major donors in order to cover all of Ukraine’s funding needs for 2023.
We are proposing €18 billion support to Ukraine in the form of loans for 2023.
This #MFA+ financial assistance of €1.5 billion per month will help 🇺🇦 maintain essential state functions, ensure macroeconomic stability and rehabilitate critical infrastructure.#StandWithUkraine
— European Commission 🇪🇺 (@EU_Commission) November 9, 2022
Thanks to this package, Ukraine will be able to keep on paying wages and pensions and maintain essential public services running, such as hospitals, schools, and housing for relocated people. It will also allow Ukraine to ensure macroeconomic stability, and restore critical infrastructure destroyed by Russia in its war of aggression, such as energy infrastructure, water systems, transport networks, roads, and bridges.
Support under the instrument will be accompanied by reforms, to further enhance the rule of law, good governance, and anti-fraud and anti-corruption measures in Ukraine. Therefore, while taking into account the evolution on the ground, financial support will be framed by policy conditions, geared towards strengthening Ukraine’s institutions and preparing the ground for a successful reconstruction effort, as well as supporting Ukraine on its European path.
See also: 🔴 LIVE UPDATES | Humanitarian response to Ukraine crisis
