European Commission signs €1 billion in Macro-Financial Assistance to support reforms in Ukraine

Photo: European Union
Photo: European Union

On 14 September, the EU and Ukraine signed a Memorandum of Understanding for a new €1 billion Macro-Financial Assistance (MFA) programme.With the assistance in the form of medium- and long-term loans, the EU will continue to support economic stabilisation in the country, including through structural and governance reforms.

“This programme will address economic vulnerabilities and support economic stabilisation, growth and job creation in Ukraine. It will provide confidence to domestic and international investors in Ukraine's future,” said Valdis Dombrovskis, Vice President of the European Commission. “Despite the difficulties it faces, Ukraine has launched ambitious reforms, to unleash its enormous economic potential. They are already bringing first results, and they must be sustained.”

The proposed new MFA complements three previous MFA programmes, through which the EU has supported Ukraine with a total of €2.8 billion since the onset of the crisis in 2014, and a programme of the International Monetary Fund (IMF).

According to Dombrovskis, the new MFA programme supports key reforms through the agreed policy programme attached to it. They cover public finance management, governance of state-owned companies and sector reforms, as well as social policies.

“Disbursements under the EU's MFA programmes are also conditional on a parallel programme of the International Monetary Fund (IMF) being on track,” he added. “Therefore it is very important to conclude the ongoing negotiations with the IMF mission positively.”

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Press release

Statement by Valdis Dombrovskis