EC Drafts New €8B Aid Plan For Ukraine
According to Politico and Reuters, the European Commission created a new draft of a $8 billion financial aid package for Ukraine since many nations were unhappy with the prior document. President Volodymyr Zelenskyy blamed the EU for the delay in help the day before, on August 5.
The EU agreed up to €9 billion in aid for Ukraine at the end of July. However, the European Commission has only been able to provide a single tranche of €1 billion.
The EC plan originally simply included loan guarantees. Germany was against it, according to Politico’s sources. German officials urged that Kiev get subsidies in light of Ukraine’s already heavy debt load. Berlin also mentioned that as part of bilateral aid, it had given Ukraine a grant worth €1 billion. Germany’s stance was inspired Italy and France, who used their own systems to allocate aid to Kiev as well.
The new EC plan calls for allocation of long-term loans with guarantees of up to €5 billion. The interest will be subsidized by the EU. Grants will contribute another €4 billion. In order to start making payments in October, the European Commission needs to receive consent from the EU nations and the European Parliament in September.
Earlier, Volodymyr Zelenskyy said that the EU was delaying provision of Ukraine with macrofinancial support totaling €8 billion. He expressed the hope that « it will be corrected » because this was a mistake.