LOAN OF € 1.8 BILLION TO UKRAINE

The EP International Trade Committee backs up plans to disburse €1.8 billion in medium-term loans to help Ukraine out of its economic recession. The loans will top up financial help from other donors under an economic programme put together by the International Monetary Fund (IMF). This additional money will make an important contribution to a new package of international support to Ukraine, both directly, through the approved amount of €1.8 billion and indirectly, by mobilising other partners' contributions. The economic recession and capital flight from Ukraine have turned out to be more severe than initially expected, resulting in a sharp depreciation of the currency and a depletion of its international reserves. Ukraine has also lost its access to international debt markets.

The loans will be disbursed in exchange for economic reform commitments and have a maximum maturity of 15 years.

The committee recommended that Parliament as a whole should back the loan plans at its mini-plenary session on 25 March. This would enable two-thirds of the money to be disbursed by the end of 2015.