EU loans to Ukraine: One billion transferred, but there is no money for the remaining eight billion

EU loans to Ukraine: One billion transferred, but there is no money for the remaining eight billion

On August 1, the European Union transferred a first installment of 500 million euros to Ukraine in part payment of another billion dollar loan announced in May as a 9 billion euro aid package. The responsible EU Commission announced this on Monday, like that Handelsblatt reportede. A second installment of another 500 million will be paid out on Tuesday, it said. According to information from Brussels, 70 percent of the total loan is secured by the EU budget. The interest on the loan would also be borne by the EU.

According to EU information, Ukraine needs the money for pension payments and the operation of hospitals. As a result of the Russian attack, the EU had already provided 1.2 billion euros in microfinance assistance to Ukraine in the first half of the year.

As with previous loans, the funds for the further loan were raised by the EU Commission on the international financial markets.

However, the outstanding loan amount for the remaining 8 billion euros does not seem to be fully secured, as it turned out on Monday. An EU spokeswoman said loudly Handelsblatt:

“In the current budget, there are no resources available for hedging.”

Therefore, according to the EU Commission, guarantees might have to be provided by the member states for the outstanding loans totaling 8 billion euros.

more on the subject – Newspaper: Germany should block EU aid package worth nine billion euros for Ukraine

Source: RT

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