Ukraine received EUR 1.5 billion in transitional financing from EU as part of Ukraine Facility

24.04.2024, 17:22 ukranews.com

This is stated in the notification of the Ministry of Finance, Ukrainian News Agency reports.

"International support is key in ensuring macroeconomic stability and building a foundation for further economic growth. The European Union is the largest donor of budget support from February 2022 - more than EUR 31 billion. The implementation of the Ukraine Facility Instrument, together with the approval of the Plan of Ukraine by the European Commission, will help to ensure timely and full coverage of urgent budgetary needs in the social sphere, as well as the implementation of restoration and reconstruction. At the same time, the implementation of structural reforms will contribute to the economic development and European integration of Ukraine," said Minister of Finance of Ukraine, Serhii Marchenko.

In March, the state budget received the first tranche of EUR 4.5 billion.

Having completed all 5 reforms in the areas of public finance management, anti-corruption, and development of the business environment, Ukraine attracted a total of EUR 6 billion provided for by the transitional financing mechanism.

On April 15, the European Commission approved the Plan of Ukraine within the Ukraine Facility, which includes a specific list of structural reforms and measures that will contribute to the sustainable development of Ukraine's economy, the "green" transition, digital transformation, and European integration.

The decision needs final approval by the Council of the EU.

After the adoption of the Plan, as well as the signing of all international agreements and the completion of domestic procedures, it is expected that EUR 1.9 billion of unconditional funding will be directed to the state budget.

As Ukrainian News Agency earlier reported, the Ukraine Facility is an instrument that allows Ukraine to receive financial and technical assistance from the EU for a total of EUR 50 billion in 2024-2027.

Of these, EUR 38.27 billion will be allocated to budget support, EUR 6.97 billion to the investment fund, and EUR 4.76 billion to technical and administrative support.