Following the European Council meeting of 20-21 October 2022, the Commission on the 9th of November has proposed a support package for Ukraine of up to €18 billion. This will come in the form of loans that would be disbursed as of 2023 through a Macro-Financial Assistance+ (MFA+) instrument. When approved by the European Parliament and the Council, the funds will ensure predictable, continuous, orderly and timely financing, to help Ukraine:
- cover its immediate funding needs, with a view to maintaining the macro-financial stability of the country;
- ensure its rehabilitation, for instance in restoring critical infrastructure, such as energy infrastructure, water systems, transport networks, internal roads or bridges, or in strategic economic sectors and social infrastructure, such as healthcare facilities, schools, and housing for relocated persons, including temporary and social housing;
- carry out sectoral and institutional reforms, including anti-corruption and judicial reforms, respect of the rule of law, good governance, and modernisation of the national and local institutions;
- prepare for reconstruction, with a view to supporting the country on its path towards European integration.
The loans will have very favourable terms and must be repaid over a maximum of 35 years beginning in 2033. Additionally, the EU wants to reduce Ukraine’s loan-related interest payments. This plan would be funded by EU Member States through external assigned revenue to the EU budget till the end of 2027. After 2027, these contributions should be continued unless other provisions in future long-term EU budgets provide for the payment of interest rates. Should they choose to, EU Member States and other parties may contribute additional monies to the instrument for use as grants. The money would then be allocated through the EU budget, enabling Ukraine to access assistance in a planned way.
The proposal to employ the guarantees offered by the EU budget, as well as the implementation of a diversified funding strategy that would bring stability to the funding on ideal financial terms, have allowed for the exceptional size of the instrument and the high degree of concessionally. This package is thus an unequivocal expression of Europe’s ongoing solidarity and support to Ukraine, as demonstrated since the start of Russia’s unprovoked and unjustified war of aggression against the country.
You can find more details at the Commission’s website.
To learn more about current calls for proposals or Eurodiaconia’s funding events, please don’t hesitate to get in touch with our our Projects and EU Funding Officer Giorgia Signoretto at email@example.com.