EU eyes cheap loan plan for ‘stable’ Ukraine funding in 2023

Nov 9, 2022, 7:20 AM | Updated: 8:00 am
European Commission President Ursula von der Leyen smiles as she waits for the start of the weekly ...

European Commission President Ursula von der Leyen smiles as she waits for the start of the weekly College of Commissioners meeting at the EU headquarters in Brussels, Wednesday, Nov. 9, 2022. (AP Photo/Geert Vanden Wijngaert)

(AP Photo/Geert Vanden Wijngaert)

BRUSSELS (AP) — The European Union on Wednesday unveiled a plan to provide Ukraine with around 18 billion euros (dollars) in financial aid next year in regular payments to help the war-ravaged country keep its energy and health care facilities running as well as to fund salaries and pension schemes.

The EU’s executive branch, the European Commission, said the aid would involve loans with extremely favorable terms worth around 1.5 billion euros every month, possibly starting in January. Ukraine would not have to reimburse the funds for at least a decade and EU member countries would cover the interest costs.

The International Monetary Fund estimates that Ukraine will need 3-4 billion dollars each month in 2023. The 27-nation EU’s contribution will be matched by the United States, while other donors and financial institutions are expected to plug the gap.

“Ukraine needs our help,” said Commission Executive Vice-President Valdis Dombrovskis as he unveiled the plan. He said the government in Kyiv needs “stable and predictable” funding. At the same time, the EU expects it to better tackle fraud and corruption and strengthen the rule of law.

The commission intends to borrow the money on capital markets using the combined weight of the 27 countries to secure more favorable terms. Some of the effort would involve restructuring part of the EU’s long-term budget, and this requires the unanimous approval of member countries.

Dombrovskis urged EU countries and the European Parliament to approve the plan before the end of the year, so that the first loans can be provided in January. “It needs to be decided quickly, 2023 is approaching fast and Ukraine’s financing needs are urgent,” he said.

The EU has been accused of being too slow to deliver funds to Ukraine, even though it has earmarked more than 19 billion euros for the country since Russian forces invaded in February.

Hungary’s foreign minister, Peter Szijjarto, said this week that his government would continue to provide financial support on a bilateral basis but that it opposes allowing the EU to take out credit to help Ukraine. Dombrovskis said he would work with Hungary to try to overcome its objections.

The EU intends to provide an additional 2.5 billion euros to Ukraine this month, and 500 million more in December.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


              European Union Foreign Policy chief Josep Borrell, left, talks with European Commissioner for Budget and Administration Johannes Hahn, right as European Commissioner for European Green Deal Frans Timmermans, center walks by at the start of the weekly College of Commissioners meeting at EU headquarters in Brussels, Wednesday, Nov. 9, 2022. (AP Photo/Geert Vanden Wijngaert)
            
              European Commissioner for Internal Market Thierry Breton, right, talks with European Commissioner for Crisis Management Janez Lenarcic as they arrive for the weekly College of Commissioners meeting at EU headquarters in Brussels, Wednesday, Nov. 9, 2022. (AP Photo/Geert Vanden Wijngaert)
            
              European Commission President Ursula von der Leyen smiles as she waits for the start of the weekly College of Commissioners meeting at the EU headquarters in Brussels, Wednesday, Nov. 9, 2022. (AP Photo/Geert Vanden Wijngaert)

AP

Associated Press

Police: 2 young children stabbed to death in Bronx apartment

NEW YORK (AP) — Two small children died of stab wounds after their mother was taken into custody for observation Saturday night in New York City, police said. A 3-year-old boy and an 11-month-old boy were found in a Bronx apartment with multiple stab wounds to the neck and torso and did not survive after […]
23 hours ago
Associated Press

Today in History: November 27, Moscone and Milk fatally shot

Today in History Today is Sunday, Nov. 27, the 331st day of 2022. There are 34 days left in the year. Today’s Highlight in History: On Nov. 27, 1978, San Francisco Mayor George Moscone (mah-SKOH’-nee) and City Supervisor Harvey Milk, a gay-rights activist, were shot to death inside City Hall by former supervisor Dan White. […]
23 hours ago
This undated photo provided on Nov. 27, 2022, by the North Korean government shows North Korean lea...
Associated Press

Kim’s daughter called ‘most beloved’ child in 2nd appearance

SEOUL, South Korea (AP) — North Korea’s leader has taken his daughter to a meeting with missile scientists in her second public appearance, in which state media called her Kim Jong Un’s “most beloved” child, deepening outside debate over whether she is being primed as his successor. The daughter, believed to Kim’s second child named […]
23 hours ago
Associated Press

Shooting in Atlanta neighborhood kills 1 person, wounds 5

ATLANTA (AP) — A shooting in an Atlanta neighborhood Saturday evening killed one person and wounded five, police said. The Atlanta Police Department said several shots were fired during a dispute around 8 p.m. on the 17th Street bridge in Atlantic Station, The Atlanta Journal-Constitution reported. Police said the shooting occurred after a group of […]
23 hours ago
FILE - A lobster rears its claws after being caught off Spruce Head, Maine, Aug. 31, 2021. Environm...
Associated Press

Whole Foods decision to pull lobster divides enviros, pols

Environmental groups are at odds with politicians in New England in the wake of a decision by Whole Foods to stop selling Maine lobster.
23 hours ago
A crime scene is taped off at New Season Church in Nashville, Tenn., on Saturday, Nov. 26, 2022. Me...
Associated Press

Drive-by shooting injures 2 at funeral at Nashville church

NASHVILLE, Tenn. (AP) — A drive-by shooting in Nashville on Saturday injured two people as they and others were walking out of church from the funeral of a woman who was fatally shot earlier this month, according to police. Metro Nashville Police Department spokesperson Don Aaron said the afternoon shooting occurred outside New Season Church, […]
23 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
EU eyes cheap loan plan for ‘stable’ Ukraine funding in 2023