35 years with no interest: details of EU assistance of €18 billion
Ukraine will receive 18 billion euros of macro-financial assistance from the EU on extremely preferential terms in 2023, which guarantee that the state will not end up in a debt pit.
Source: European Pravda
As European Pravda reports, the loan repayment period is 35 years. It is noteworthy that the EU has never before lent money to Ukraine for such a period. Last year's loans had a term of repayment of 25 years, and before the full-scale war, it was usually a 15-year term.
This duration of the loan makes it easier to repay, because in two or three decades, the real value of 1 euro will be significantly lower than today, the article says.
Another important point is that Ukraine will not have to repay the loan in the next 10 years. Repayment should begin only in 2033. This is an unprecedentedly long grace period.
In addition, it is possible to write off the debt or repay it at the cost of the contribution from the aggressor state. In this case, the debt will essentially turn into a grant.
Ukraine will not pay interest or other payments for servicing this loan. The interest will be paid by the EU countries instead of Ukraine.
However, it should be emphasised that in the terms of the €18 billion loan, described in the agreed memorandum between Ukraine and the European Commission, the "interest subsidy" is activated in exchange for the implementation of reforms.
Quote: "In fact, we can talk about the end of the period when the EU perceived the war as a sufficient justification for problems with the implementation of quality structural reforms," the publication says.
Read the details of the political conditions set by the EU in the following article: Price of Saving Ukraine. On What Conditions EU Allocates €18 Billion to Kyiv
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