EU working to provide Kyiv with $8 billion in macro-financial loans – European Commission

European Union leaders are seeking a way to provide Ukraine with up to 8 billion euros ($8 billion) in macro-financial assistance, announced several months ago, and are holding technical discussions on the issue with member states, the European Commission said on Tuesday

BRUSSELS (UrduPoint News/Sputnik – Aug 30, 2022) European Union leaders are seeking a way to provide Ukraine with up to 8 billion euros ($8 billion) in macro-financial assistance, announced a several months, and are holding technical talks on the issue with member states, the European Commission announced on Tuesday.

“As per the request received from the European Council, these technical talks are ongoing with Member States, and there is a shared sense of urgency to mobilize the remaining amount of this financial assistance,” said Nuyts Veerle, European Commission spokesperson for economic issues. and financial affairs, employment and social rights, said during a midday briefing.

In July, the European Commission said that the cover considered for new macro-financial loans to Ukraine should be 70% of the loan value so that the bloc’s budget is protected against increased risks. However, the target cannot be achieved currently due to the lack of funds in the EU budget plan. According to the rules of the bloc, macro-financial loans are covered by a reserve of 9%.

In early August, the European Commission said guarantees from EU member states could become a safety cushion to provide Kyiv with additional loans worth up to €8 billion. EU countries are simply expected to confirm their ability to make appropriate financial contributions to the budget if needed. The European Commission has negotiated the issue with the Member States.

According to European Commission Chief Spokesman Eric Mamer, this is one of the possible models that could allow funds to be transferred to Ukraine.

“Our line is basically that we’re looking for a solution that could be this or another,” Mamer said during the briefing.

In May, the European Commission offered to send macro-financial assistance worth €9 billion to Ukraine. A loan of 1 billion euros was granted at the beginning of August. The European Commission did not need any guarantees from member states to transfer these funds, since the allocation could be made within the bloc’s current budget plan.