Europe gives Ukraine credit of 500 million euro

Ukraine will be provided with European macrofinancial aid

In brief: Such measures are the EU instrument for the neighboring countries such as Ukraine, Belorussia, Moldova and the Balkans.

Yesterday European Parliament accepted the initiative of European Commission to give Ukraine credit of 500 million euro. However, there are some certain conditions for Ukraine to realize in order to receive financial aid. Also there is no certain date of the first tranche. Firstly Ukraine has to renew its business relations with the IMF. Then European Parliament has to find sources of finances.

Yet in October, 2009, European Commission initiated the idea of providing Ukraine with macrofinancial aid in order to stabilize its economy, budget and payable balances. Such measures are the EU instrument for the neighboring countries such as Ukraine, Belorussia, Moldova and the Balkans. Before, the EU provided Ukraine with financial aid gratis. Now the basic condition for Ukraine is to renew cooperation with the International Monetary Fund (IMF). Also European Commission has a right to set other conditions to Ukraine. The first tranche is planned to be given several months later. European Commission has to define the source of financial aid. It may be European Investment bank, European Bank for Reconstruction and Development or even commercial banks. Ukrainian authorities now decide how to use European credit. General spheres, which are in need of finances, are energy, EURO-2012 project and utility reforms.

Maria Velikanova
2010-05-19 09:47, Economics.

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