The European Parliament has approved the Commission’s proposal for new macro-financial assistance (MFA) to Ukraine. The European Commission welcomes the Parliament’s decision, an important step towards swift disbursement of up to €1.8bn in medium-term loans in 2015 and 2016. The clear backing by the European Parliament underlines the EU’s commitment to continue its unprecedented support to the country, which has been hit hard by a deep recession. The conflict in the East of the country has taken its toll on the economy.
The new MFA comes on top of what the EU is already contributing via the State Building contract in terms of humanitarian and technical assistance and in terms of project assistance. It would also be the third MFA programme for Ukraine since 2010. In the course of 2014, the Commission disbursed €1.36bn in support of Ukraine under existing MFA programmes. The disbursement of a final tranche of €250m under MFA 1 is expected this spring.
The MFA is intended to assist Ukraine economically and financially with the critical challenges the country is facing, such as a weak balance of payments and fiscal situation. The intention is also to help the new reform-orientated government strengthen the country and deal with economic and political challenges.
The new MFA programme is now to be finally approved by the Council of Ministers of the EU. A prerequisite for disbursement will be the successful continuation of Ukraine’s IMF programme and the implementation of economic and financial policies, in accordance with the Memorandum of Understanding to be agreed between the Commission and the government of Ukraine.