​The Parliament ratifies the Memorandum of Understanding and the Loan Agreement between Ukraine and the EU for macro-financial aid from the EU amounting up to EUR 1 billion

11/8/18

The Ministry of Finance welcomes the Parliament’s decision to approve international agreements enabling Ukraine to receive macro-financial (credit) aid from the EU equal to up to EUR 1 billion.

242 members of Parliament have voted for the ratification of the Memorandum of Understanding and the Loan Agreement between Ukraine and the EU today.

The draft law No. 0203 was prepared by the Ministry of Finance to enact the international agreements signed in Kyiv on September 14, 2018 that stipulate the engagement of external financial resources and steps to ensure the stability of Ukraine’s financial and economic system.

According to these agreements, macro-financial aid can be provided to Ukraine in two tranches amounting EUR 500 million each.

The period between the first and second tranche shall be at least three months.

The re-payment term for the loan shall not exceed 15 years.

The interest rate of the loan will not be higher than 2% per year (the exact interest rate will be known, when the EU – which has the highest credit rating (ААА) – applies to external creditors on the loan market to receive the funds which will be transferred to Ukraine at the same interest rate the EU will be charged).

The conditions for Ukraine to receive the first and the second tranche include the implementation of measures stipulated in the Memorandum which are aimed to reform some of the state policy areas: public finance management, good governance and fight on corruption, sectorial reforms and state-owned companies, social policy and others.

The Memorandum enters into force on the day of its ratification. The Loan Agreement enters into force, after the EU has received an official written notification from Ukraine about the finalization of all domestic constitutional and legal procedures required by the law of Ukraine.

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