Ukraine signs loan agreement with EU
Ukrainian Finance Minister Sergii Marchenko, National Bank of Ukraine Governor Andriy Pyshnyy, and European Commission Vice-President Valdis Dombrovskis have signed a significant Memorandum of Understanding and loan agreement with the European Union, ensuring up to EUR 35 billion in Macro-Financial Assistance (MFA). This development was announced by the Ukrainian Finance Ministry, CE Report quotes Ukrinform.
The funding is part of the G7's Extraordinary Revenue Acceleration Loans for Ukraine initiative.
The final MFA amount will be confirmed once all parties involved in the initiative agree on the loan terms. With the United States contributing $20 billion, the EU’s portion of the Macro-Financial Assistance is expected to reach EUR 18 billion.
The loan repayment will be secured through future revenues generated from frozen Russian sovereign assets in the EU, meaning the funds will not require repayment from Ukraine’s domestic financial resources. Therefore, the MFA is expected to be provided on a non-repayable basis.
These funds will be allocated through the newly established Ukraine Loan Cooperation Mechanism (ULCM), which will offer Ukraine non-repayable financial assistance.
The initiative includes 14 key measures aimed at attracting and managing the MFA. Focus areas include macro-financial stability, state-owned enterprises, public administration reform, energy sector improvements, the rule of law, anti-corruption efforts, and strengthening the defense industry.
Minister Marchenko emphasized the importance of unlocking frozen Russian assets, stating, "The next important step is to raise funds from the frozen assets of the aggressor country. In recent months, we have been actively working with the EU and other stakeholders to achieve concrete financial support for Ukraine in 2025 and beyond. I am grateful for the constructive cooperation and the commitment to implementing fair solutions swiftly."
