EU approves $5B loan to Ukraine

By Agnes Szucs

BRUSSELS (AA) - The EU approved on Tuesday to grant a loan of €5 billion ($5 billion) to Ukraine as a second part of the bloc’s €9 billion micro-financial assistance package.

“The Council (of the European Union) today formally adopted the decision to provide €5 billion of additional macro-financial assistance to Ukraine, as a matter of urgency,” the EU institution said in a press statement.

The move came after the European Parliament gave the green light for the loan last week.

The bloc has already disbursed €1 billion from its €9 billion package to help Ukraine cover its financial needs.

“We deliver on our promises and help ensure that the Ukrainian state and its key infrastructure can continue to function despite Russia's war of aggression,” Czech Finance Minister Zbynek Stanjura said, welcoming the decision.

He vowed to “push for a swift agreement on the provision of the remaining €3 billion, for which we must also agree on the division of this amount into loans and grants” at the next meeting of EU finance ministers on Oct. 4.

Following the approval of EU member states and the European Parliament, the European Commission will borrow from the financial markets to provide the amount for Ukraine.

The country can repay the long-term loan on favorable terms, including interest costs and administration fees covered by the EU.