Decision (EU) 2022/1628 providing exceptional macro-financial assistance to Ukraine, reinforcing the Common Provisioning Fund by guarantees by Member States and by specific provisioning for some financial liabilities related to Ukraine guaranteed under Decision No 466/2014/EU, and amending Decision (EU) 2022/1201

Author (Corporate) ,
Series Title
Series Details L 245, Pages 1-13
Publication Date 22/09/2022
Content Type ,

Summary:

Decision (EU) 2022/1628 - formally adopted by the co-legislators on 20 September 2022 - allowing the disbursement of a further €5 billion in macro-financial assistance (MFA) to Ukraine, as the second part of an exceptional package previously announced by the European Commission.

Further information:

Macro-Financial Assistance (MFA) operations are part of the European Union's wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbourhood countries experiencing severe balance-of-payments problems.

In order to make a contribution toward financing some of the estimated funding gap, the European Commission announced in May 2022 its intention to propose an exception MFA operation of up to €9 billion to Ukraine. This was endorsed by the European Council in June 2022. The first €1 billion of the exceptional MFA package was adopted in July 2022 - Decision (EU) 2022/1201 - and disbursed in two equal tranches in August 2022.

This Decision enables the EU to provide further exceptional macro-financial assistance (MFA) to Ukraine of €5 billion in loans, while equipping the EU budget with the means to absorb the risk of losses on these additional loans and on the €1 billion MFA loan adopted earlier in the year. In addition, it also seeks to extend the same budgetary protection for the disbursement of already signed External Lending Mandate (ELM) loans to the Ukrainian authorities and Ukrainian state-owned entities after 15 July 2022.

The draft Decision was adopted by European Commission on 7 September 2022. The plenary of the European Parliament endorsed it on 15 September, followed by the Council of the European Union on 20 September. The Act was formally adopted on that same day and published in the Official Journal on 22 September 2022.

Source Link http://data.europa.eu/eli/dec/2022/1628/oj
Related Links
News
Politico, 07/09/2022: European Commission proposes €5B in aid for Ukraine https://www.politico.eu/article/european-commission-5-billion-euros-aid-ukraine/
Interfax, 07/09/2022: European Commission head proposes providing Ukraine with another 5 bln euros in financial aid https://interfax.com/newsroom/top-stories/82936/
Reuters, 09/09/2022: EU ministers back $5 billion loan to Ukraine, discuss long-term options https://www.reuters.com/world/europe/eu-finance-ministers-back-next-5-billion-loan-ukraine-2022-09-09/

Official
EUR-LEX: COM(2022)557: Proposal for a Decision providing exceptional macro-financial assistance to Ukraine, reinforcing the Common Provisioning Fund by guarantees by the Member States and by specific provisioning for some financial liabilities related to Ukraine guaranteed under Decision No 466/2014/EU, and amending Decision (EU) 2022/1201 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2022:557:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Exceptional macro-financial assistance to Ukraine; reinforcement of the Common Provisioning Fund (2022/0281(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2022/0281(COD)
European Commission: International Economic Relations: Ukraine https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/international-economic-relations/enlargement-and-neighbouring-countries/neighbouring-countries-eu/neighbourhood-countries/ukraine_en
European Commission: Press Release, 07/09/2022: European Commission proposes second €5 billion tranche of macro-financial assistance to Ukraine https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5373
Council of the European Union: Press Release, 09/09/2022: EU ministers agree statement in support of additional €5 billion assistance for Ukraine https://www.consilium.europa.eu/en/press/press-releases/2022/09/09/eu-ministers-agree-statement-in-support-of-additional-5-billion-assistance-for-ukraine/
European Parliament: Press Release, 15/09/2022: Parliament approves €5 billion loan to Ukraine https://www.europarl.europa.eu/news/en/press-room/20220909IPR40142/
Council of the European Union: Press Release, 20/09/2022: Council adopts additional €5 billion assistance to Ukraine https://www.consilium.europa.eu/en/press/press-releases/2022/09/20/council-adopts-additional-5-billion-assistance-to-ukraine/

Subject Categories
Subject Tags
Keywords ,
Countries / Regions
International Organisations