Decision (EU) 2022/1628 providing exceptional macro-financial assistance to Ukraine, reinforcing the common provisioning fund by guarantees by Member States and by specific provisioning for some financial liabilities related to Ukraine guaranteed under Decision No 466/2014/EU

What it is

The European Parliament adopted by 534 votes in favour, 30 against and 26 abstentions a legislative resolution on the proposal for a decision of the European Parliament and of the Council providing exceptional macro-financial assistance to Ukraine, reinforcing the Common Provisioning Fund by guarantees by the Member States and by specific provisioning for some financial liabilities related to Ukraine guaranteed under Decision No 466/2014/EU, and amending Decision (EU) 2022/1201. The European Parliament adopted its position at first reading in accordance with the ordinary legislative procedure, taking over the Commission proposal. The proposal aims at allowing the EU to provide Ukraine with an additional exceptional macro-financial assistance (MFA) of EUR 5 billion in the form of highly concessional loans with a view to supporting Ukraine's macro-financial stability. The funds for this exceptional MFA will be borrowed on the capital markets and then lent to Ukraine. This assistance will complement the EUR 1 billion exceptional MFA granted to Ukraine under Decision (EU) 2022/1201. Russia’s unprovoked and unjustified war of aggression against Ukraine since 24 February 2022 has caused Ukraine a loss of market access and a drastic drop in public revenues, while public expenditure to address the humanitarian situation and to maintain the continuity of State services has increased markedly. In that very uncertain and volatile situation, the best estimates of Ukraine’s funding needs by the International Monetary Fund (IMF) point to an extraordinary financing gap of around USD 39 billion in 2022.

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