Press Release: EU/Ukraine: Commission proposes a further €1 billion in macro-financial assistance

On 19 March 2014, the European Commission proposed new macro-financial assistance (MFA) to Ukraine of up to €1 billion in medium-term loans. The new MFA programme is part of the package of support to Ukraine announced by the European Commission on 5 March and endorsed by the European Council on 6 March. It is intended to assist Ukraine economically and financially in view of the critical challenges it is facing, notably a very weak and rapidly worsening balance-of-payments and fiscal situation, which is being worsened by the current crisis.

The proposed EU MFA is designed to help Ukraine cover part of its urgent external financing needs in the context of the stabilisation and reform programme currently under preparation with the help of the International Monetary Fund (IMF). The proposed assistance is aimed at reducing the economy’s short-term balance of payments and fiscal vulnerabilities.

• Primary Source

ESO: Background information: European Commission's support to Ukraine http://www.europeansources.info/record/press-release-european-commissions-support-to-ukraine/

European Commission: RAPID: SPEECH/14/232: Speaking points by Vice-President Olli Rehn on Macro-Financial Assistance to Ukraine http://europa.eu/rapid/press-release_SPEECH-14-232_en.pdf

ESO: Background information: Foreign Affairs Council, Brussels, 17 March 2014 http://www.europeansources.info/record/press-release-foreign-affairs-council-brussels-17-march-2014/

ESO: Background information: Extraordinary meeting of EU Heads of State or Government on Ukraine, Brussels, 6 March 2014 / Crimean MPs vote to become part of Russia http://www.europeansources.info/record/extraordinary-meeting-of-eu-heads-of-state-or-government-on-ukraine-brussels-6-march-2014-crimean-mps-vote-to-become-part-of-russia/

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