The European Commission has transferred EUR 500 million to Ukraine as the first tranche of the European Union’s fourth macro-financial assistance program, according to information on the website of the Ministry of Finance, the CFTS portal reports.
According to the ministry, the funds were provided as a loan until April 2033 at the interest rate of 1.25% per annum.
The funds were transferred into the state budget, and they are intended for financing implementation of structural reforms, among other things.
The list of measures that Ukraine is required to implement to obtain the EU macro-financial assistance includes combating corruption, improving the quality of public administration and the tax system, reforming of the energy sector, social policy, and corporate governance in state-owned enterprises, as well as reforming the public finance management system.
The second tranche is expected to be disbursed in spring 2019 based on the results of an assessment of Ukraine’s implementation of the measures to reform state policy in the relevant sectors.
The European Union has provided EUR 2.81 billion in macro-financial assistance to Ukraine since 2014.