The European Union's leadership is looking for a way to provide Ukraine with up to 8 billion euros ($8 billion) in macro-financial assistance, which was announced several months ago, and is holding technical talks on the issue with member states, the European Commission said on Tuesday
BRUSSELS (Pakistan Point News / Sputnik - 30th August, 2022) The European Union's leadership is looking for a way to provide Ukraine with up to 8 billion Euros ($8 billion) in macro-financial assistance, which was announced several months ago, and is holding technical talks on the issue with member states, the European Commission said on Tuesday.
"In accordance with the demand received from the European Council, these technical talks are underway with the member states, and this is of shared feeling of urgency to mobilize the remaining amount of this financial assistance," Nuyts Veerle, the EU Commission spokeswoman for economic and financial affairs, jobs and social rights, said at a mid-day briefing.
In July, the EU commission said that the envisaged coverage for new macro-financial loans to Ukraine should be at 70% of the loan value so that the bloc's budget is protected amid increased risks. However, the goal cannot be currently achieved due to the lack of funds in the EU budget plan. According to the bloc's rules, macro-financial loans are covered by a reserve of 9%.
In early August, the EU commission said that guarantees from EU member states could become a safety cushion for supplying Kiev with additional loans worth up to 8 billion euros. EU countries are expected to just confirm their ability to make appropriate financial contributions to the budget if necessary. The EU commission has been negotiating the issue with member states.
According to Chief Spokesperson for the European Commission Eric Mamer, this is one of the possible models that could allow funds to be transferred to Ukraine.
"Our line is basically that we're looking at a solution that could either be that or another," Mamer said at the briefing.
In May, the EU commission offered sending macro-financial support worth 9 billion euros to Ukraine. A loan of 1 billion euros was allocated in early August. The EU commission needed no guarantees from member states to transfer those funds, since the allocation could be done within the framework of the current bloc's budget plan.
