The EU has announced a new aid loan for Ukraine. This concerns the last 1.5 billion euros of a support program that was decided a year ago. It is still unclear how financial aid to the war-torn country will continue.
The EU support program for 2023 totals 18 billion euros. For example, the Ukrainian state should use the financial aid to continue paying wages and pensions. The operation of hospitals, schools and emergency shelters for resettled people must also be guaranteed. In addition, the funds can be used to restore destroyed infrastructure such as power lines, water systems, roads and bridges.
Despite the war, the previous loans are linked to twenty reform commitments and reporting obligations, such as the rule of law and the fight against corruption. Repayment is expected to begin in 2033 and could take up to 35 years. Interest will be waived for Ukraine.
Special summit planned for February
It is still unclear how financial aid to the war-torn country will continue next year. Originally, the EU summit should have decided at the end of last week on a new aid program worth more than 50 billion euros for the next four years. However, Hungarian Prime Minister Viktor Orbán vetoed the plan and had previously criticized the plans several times (see video above).
If no solution is found in the coming weeks, the other EU countries want to negotiate without Hungary. A special EU summit is planned for February 1 on how to proceed. Commission President Ursula von der Leyen warned on Thursday that an agreement must be reached to continue to provide the country with the best possible support.
Here is a tweet from Ursula von der Leyen calling for support for Ukraine.
Greatest giver
The European Union has been Ukraine’s largest donor this year, providing 45 percent of external aid. Since the start of the war in February 2022, the country has been heavily dependent on money from abroad. According to Finance Minister Serhiy Marchenko, Ukraine will have to borrow more than planned in the first two months of 2024. It was said that the partner countries’ commitments would not be enough. For example, earlier dividend payments from state-owned companies are also planned.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
