EU to provide additional €100m lending for Ukraine reconstruction

13.06.2023, 14:33
EU to provide additional €100m lending for Ukraine reconstruction - Photo
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The European commission and the European investment bank (EIB) have agreed to make available an EU guarantee enabling the EIB to provide EUR 100 million of new loans to Ukraine.

The funds will be available for ‘fast recovery’ projects such as for municipal or energy infrastructure repairs.

This EU guarantee is one of the elements of the EU for Ukraine (EU4U) Initiative that the EIB approved in March 2023.

"In addition to our EUR 1 billion for fast recovery to support critical sectors, the agreed EU guarantee allows EIB to lend to Ukraine an additional EUR 100 million on very favourable terms. We are determined to bring back life to all the communities in Ukraine that suffer from Russia's aggression," EU commission’s president Ursula von der Leyen was quoted as saying.

Overall, the EU has made available EUR 70 billion in support for Ukraine and its people, including – with this latest agreement – EUR 2.4 billion of EIB financing to Ukraine, backed by an EU guarantee.

The EIB Board of Directors approved on 29 March a new support package for Ukraine (the EU for Ukraine (EU4U) Initiative), envisaging inter alia the set-up of a trust fund ("EU4Ukraine Fund") that would provide a risk-sharing mechanism between the EIB Group and donors.

This will enable the EIB Group to provide new loans to Ukraine and other relevant products, notably partial portfolio guarantees for Ukrainian banks.

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