1 billion € program for Ukraine from EU

European Commission Vice-President Siim Kallas signed today the Memorandum of Understanding on the new €1 billion macro-financial assistance (MFA) loan programme to Ukraine, which was approved by the EU Council of Ministers on 14 April.

The new MFA programme is intended to assist Ukraine economically and financially in the current critical stage of its development. It is part of the package to support Ukraine announced by the European Commission on 5 March and endorsed by the European Council on 6 March.

European Commission Vice-President Siim Kallas said: "This assistance, combined with the previously decided €610 million MFA programme, will provide much-needed help to the Ukrainian Government for its financing needs. It is a concrete sign of the EU's support to the Ukrainian people in a difficult situation, along with the other long-term financial assistance".

The EU MFA is designed to help Ukraine cover part of its urgent external financing needs in the context of the stabilisation and reform programme recently prepared by the Ukrianian authorities with the help of the International Monetary Fund (IMF).

The assistance is aimed at reducing the economy’s short-term balance of payments and fiscal vulnerabilities.