European Commission offers €1 billion assistance package to Ukraine
The European Commission has adopted a proposal for a new Macro-Financial Assistance (MFA) program for Ukraine worth up to €1 billion ($1.23 billion) intended to support economic stabilization and structural reforms, as said in the statement on the website of the European Commission.
"Today's proposal follows the request of the Ukrainian authorities and direct discussions between [European] Commission President Jean-Claude Juncker and Ukraine’s President Petro Poroshenko. The new program seeks to build on the progress made in supporting economic stabilization and structural reforms under the three previous MFA operations," the statement said.
Vice-President of the European Commission, Valdis Dombrovskis noted that the proposal of the fourth Macro-Financial Assistance program shows the EU's commitment to stand with the people of Ukraine.
"This solidarity must go hand in hand with a continued commitment from the Ukrainian authorities on an ambitious reform agenda to ensure a stable and prosperous Ukraine. We are counting on the European Parliament and Member States for their support for this important program," he noted.
European Commissioner Pierre Moscovici also urged the Ukrainian authorities to move forward with the reform drive with renewed vigor, "to build a fairer, more stable and more prosperous country in the interest of all Ukrainians."
"All disbursements under the proposed program, including the first, would be conditional upon the implementation of reform measures designed to address vulnerabilities identified in the Ukrainian economy. Established in a Memorandum of Understanding, they would take into account measures that remain outstanding from the previous MFA program, and include steps to intensify the fight against corruption," Euro Commission noted.
The European Commission's proposal concerning the fourth MFA program for Ukraine still needs to be approved by the European Parliament and the Council of the EU.
Ukraine has so far received a total of €2.81 billion ($3.46 billion) worth of MFA loans since the beginning of 2014. €1.61 billion ($1.98 billion) was allocated in 2014-2015, as part of two earlier MFA programs, and €1.2 billion ($1.48 billion) in two disbursements in 2015-2017 as part of the third program.
Ukraine has fulfilled 17 of 21 political commitments attached to the third tranche of €600 million ($738 million) that could have been made available to Ukraine under the third MFA program. Four commitments were not implemented by the time the availability period of the assistance expired in January 2018 and the Euro Commission did not disburse the last tranche.