Ukraine has received another €1.5 billion bailout loan from the EU. As Commission President Ursula von der Leyen announced on Tuesday, he should help the country attacked by Russia to keep the state running and repair infrastructure. “We are doing everything we can to support Ukraine,” said the former German defense minister.
The money is part of a loan program of up to €18 billion agreed by EU member states last December for this year. With the financial aid, the EU wants to enable the Ukrainian state to continue paying wages and pensions. In addition, the operation of hospitals, schools and emergency shelters for resettled people should be guaranteed. In addition, the money can also be used to restore infrastructure destroyed by the Russian war of aggression. These include, for example, power lines, water systems, and roads and bridges.
Loans subject to conditions
Despite the ongoing war, the loans are linked to 20 reform commitments and reporting obligations. They deal, for example, with the rule of law and the fight against corruption. Ukraine has up to 35 years to repay the money, which is scheduled to start in 2033. The interest costs are borne by the member states of the EU.
According to EU figures on Tuesday, total EU support for Ukraine since the beginning of the war now amounts to around 76 billion euros. This includes financial, humanitarian and military support to Ukraine from the EU, Member States and European financial institutions. It also takes into account EU funds made available to member states to care for Ukrainian war refugees.
Von der Leyen recently proposed the creation of a new financing instrument to support Ukraine in the coming years. It is to be provided with up to 50 billion euros for grants and loans for the period 2024 to 2027.
