Friday, November 9, 2018

Ukraine's parliament ratifies agreement with EU on EUR 1 bln in macro-financial assistance


The Verkhovna Rada, Ukraine's parliament, has ratified the Memorandum of Understanding and the agreement between Ukraine and the European Union on up to EUR 1 billion in macro-financial assistance.

"According to the agreement, the loan is worth EUR 1 billion. It will be provided in two tranches. For the first tranche, we have already fulfilled all the technical conditions set out in the memorandum," Acting Finance Minister of Ukraine Oksana Markarova said introducing relevant bill No. 0203 on November 8, as reported by an UNIAN correspondent. Some 242 lawmakers voted for the adoption of the bill as a whole with the required minimum being 226 votes. 

In particular, the assistance will be provided in two tranches worth EUR 500 million given the fulfilment by Ukraine of the conditions under the program with the International Monetary Fund and the European Commission's positive assessment of the progress made in Ukraine with regard to macroeconomic and structural reforms. According to the agreement, the assistance is provided with the understanding that the Ukrainian authorities will continue to respect effective democratic mechanisms, in particular, a multiparty parliamentary system, and the rule of law, as well as guarantee respect for human rights. Markarova says the rate under this agreement will not exceed 3% per annum with the term is no more than 15 years, and the first tranche can be provided upon ratification of the agreement as early as this year. 

As UNIAN reported earlier, the European Council on June 26 finally approved the forth package of macro-financial assistance to Ukraine in the amount of EUR 1 billion. Ukrainian President Petro Poroshenko says Ukraine is quickly fulfilling obligations under an agreement with the European Union. Therefore, an EU tranche worth up to EUR 500 million is expected to arrive soon.



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