Ukraine ratifies agreement on €90bn EU loan for budget support and macro-financial stability

The Verkhovna Rada (Ukrainian Parliament) has ratified an agreement on a €90 billion EU macro-financial assistance loan for Ukraine.

Source: press service for the Ukrainian parliament

Details: The press service reported that 298 MPs voted in favour of the appropriate law.

The document enables Ukraine to receive financial assistance from the EU totalling up to €90 billion in 2026-2027.

The funds will be allocated to cover the state budget deficit, ensure macroeconomic stability and strengthen Ukraine's defence-industrial capacity.

"Repayment of the principal amount of the loan will be carried out exclusively using reparations from the Russian Federation, while the interest payments will be covered by the EU budget," the press service said.

Background:

• Earlier, the European Union and Ukraine finalised the text of the Loan Agreement required for Kyiv to receive the €90 billion loan in 2026-2027. The document was submitted to the parliament for approval, along with a Memorandum of Understanding on the loan.
• Prior to that, it was also reported that Ukraine must implement a number of reforms to receive part of the budget support under the EU's €90 billion loan. These requirements will be based on elements of a plan known unofficially as the "10-point Kachka-Kos plan", one of which provides for the adoption of an Anti-Corruption Strategy.
• It was also previously reported that an International Monetary Fund (IMF) mission had begun meetings with Ukrainian authorities and partners in Ukraine as part of the first review of the Extended Fund Facility.
• Staff from the IMF are expected to assess Ukraine's progress in implementing economic reforms and expanding the tax base under a US$8.1 billion loan programme.

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