EU Set to Approve €90 Billion Loan for Ukraine, with First Payments Possible in April

The EU's Loan Package for Ukraine

According to ХВИЛЯ: The European Union is preparing a €90 billion loan for Ukraine. The EU Council is scheduled to approve two key legislative acts on February 24, which will enable the technical work for this loan to begin. These documents pertain to amendments to the EU's long-term budget for the 2021-2027 period. Despite procedural delays, the European Commission hopes the first payments to Ukraine could start as early as the beginning of April. This substantial financial package is part of the EU's ongoing commitment to support Ukraine's economy and infrastructure during the ongoing conflict.

The loan announcement was made by European Commissioner Valdis Dombrovskis in a discussion with the publication 'European Pravda'.

He noted that approving these acts will allow work to proceed on the further documents required to grant the loan to Ukraine, including this year's financing strategy.

Political Hurdles and Support

However, the process is not without obstacles. Hungary is currently blocking a third necessary document, which could slow things down. In December, all EU leaders, including Hungarian Prime Minister Viktor Orbán, agreed to support the loan. It is important to note that Hungary, Slovakia, and the Czech Republic are not participating in the financial backing of this loan. Valdis Dombrovskis expressed hope that these countries will honor the agreement reached and that the loan will be provided within the stipulated timeframe. The situation highlights the complex political negotiations that often underpin major EU financial decisions.

This loan is a crucial step in supporting Ukraine amidst war and economic crisis. The EU Council's approval of the legislative acts on February 24 could be a decisive moment in the financing process, yet Hungary's blocking action underscores the political difficulties that can arise within the EU. It is vital that leaders of countries not involved in the financing adhere to prior agreements, as this could impact the speed and effectiveness of delivering financial aid to Ukraine.