Daily Management Review

EU to allocate €1.59 billion to Ukraine through European Investment Bank


The European Investment Bank (EIB) will provide $1.59 billion to help Ukraine's citizens and reconstruct its infrastructure. According to a statement from the European Commission, €1.05 billion will be given right away and €590 million will follow later.

Ivan Bandura
Ivan Bandura
The European Commission adds that work on projects in the areas of energy, energy efficiency of roads, transport, education, and infrastructure will resume owing to EIB assistance. They will cost €540 million in total.

A loan of €1.5 billion to Ukraine was stopped by the European Commission in early July. The European Commission questioned the loan recipient's ability to repay the debt.

According to sources among EU officials, the European Commission also insisted that the collateral for the loan for Ukraine be 70% of the total amount of financing rather than the customary 9%. The source for the news agency claims that the European Commission is searching for alternate ways to divide the risks of lending to Ukraine among EU member states.

source: bloomberg.com