EU finance ministers have decided to urgently provide Ukraine with additional macro-financial assistance (MFA) in the amount of 1 billion euros.
The FFA, approved today, is designed to meet Ukraine’s most urgent funding needs, as well as to ensure the ability of the Ukrainian state to continue to perform its most important functions.
“The extension of material and financial assistance is not an option, but our obligation. Therefore, I am very pleased that we quickly passed the decision to provide 1 billion euros of macro-financial assistance. This will provide Ukraine with the necessary funds to cover urgent needs and ensure the operation of critical infrastructure,” commented Minister of Finance of the Czech Republic presiding in the Council of the EU Zbynek Stanyura.
It takes shape long-term loan with special conditions. The MFP will be available for one year and will be paid as a single payment that can be divided into one or more tranches. This new GIF operation is part of an extraordinary international effort by bilateral donors and international financial institutions to support Ukraine at this critical juncture.
The tranche and assistance will be provided after a memorandum of understanding is agreed with the Ukrainian authorities. It will include increased transparency and reporting on the use of funds, and will establish reporting requirements to which such MFPs will be associated.