Ukraine will get EUR 5 billion of cheap loans. There is final approval from the European Union

This decision by the EU ends the several-month-long battle for the transfer of money. In May, it pledged €9 billion. It only disbursed 1 billion to start with, and legal disputes over loan guarantees prevented a quick decision on subsequent tranches.

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Ukraine will get money from the European Union

Last week, the European Parliament agreed to provide financial support. By contrast, today’s agreement to transfer 5 billion euros means that 3 billion of the package promised in May remains to be paid out. they are to be used to cover urgent needs, including payment of salaries in the state budget and social benefits.

“In the next step, the decision will be published in the Official Journal of the EU. Then, an agreement will be agreed between the European Commission and the government of Ukraine. In October, the European Commission may obtain funds on the financial markets and transfer them to Ukraine. At the same time, Member States will conduct national procedures for granting guarantees for the loan” – .

Ukraine needs 349 billion euros for reconstruction (for damage done before June 1)

However, Ukraine’s needs are much greater. It is estimated that it needs around EUR 5-6 billion a month, and the costs of rebuilding the country and economy as a result of the Russian invasion reach as much as EUR 349 ​​billion. These are the preliminary estimates of the Ukrainian government, the European Commission and the World Bank.

It is worth noting, however, that the report presenting the costs of rebuilding Ukraine covers only the period until June 1 this year, which means that the damage caused in the last three months has not yet been taken into account. The cost of direct damage is estimated at $97 billion, with housing, transportation, commerce and industry being the hardest hit.

“It’s an astonishing sum,” Anna Bjerde, World Bank vice president for Europe and Central Asia, told . “We have to admit that this war is having a devastating impact on Ukraine. Also, new data from Ukraine shows that the country’s GDP fell by 37 percent in the second quarter on an annualized basis.