EU transfers €4.2 billion to Ukraine as macro-financial tranche

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The European Commission has transferred almost €4.2 billion to Ukraine as part of the first tranche of the Ukraine Facility programme.

Source: a statement by the European Commission, as reported by European Pravda

Details: The European Commission reiterated that after considering Ukraine’s payment request, the EU Council endorsed the Commission’s assessment that Ukraine had satisfactorily fulfilled nine reform indicators related to the first regular quarterly payment. These conditions, covering public financial management, management of state-owned companies, business environment, energy and mine clearance, were set out in the Ukraine Plan.

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Quote: “Today’s payment follows the initial payments made under the Facility, namely €6 billion in bridge financing and €1.9 billion in pre-financing, and is a testament to the swift implementation of the Ukraine Plan.”

Background: 

• At a government meeting last week, Prime Minister Denys Shmyhal said that Ukraine expects to receive a €4.2 billion tranche under the Ukraine Facility programme in the near future.
• In July, the EU ambassadors approved the allocation of the first payment (€4.2 billion) under the Ukraine Plan reform plan under the Ukraine Facility.
• The funds are part of a macro-financial assistance programme for Ukraine worth up to €50 billion.
• Ukraine received the first tranches without any conditions, and the next tranches are conditional on the implementation of a specific reform plan in a number of areas.

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