Ukraine: Commission proposes new facility of up to €50 billion 2024-2027
date: 27/06/2023
On 20 June the European Commission proposed as part of the review of the EU’s budget framework for the period 2024-2027, a dedicated financing instrument, the Ukraine Facility, that will provide coherent, predictable and flexible support for the period 2024-2027 to Ukraine.
The foreseen overall amount of the Facility is up to €50 billion for the period 2024 to 2027 for grants, guarantees and loans. Of this, an indicative amount of €33 billion could be provided in the form of loans under the Facility, commencing in 2024 subject to agreement of Council and European Parliament. The exact amount of loans will then be decided annually.
The loan component of the Facility will be financed via borrowing in the capital markets in the form of EU-Bonds, similarly to the approach under the current Macro Financial Assistance ‘Plus' (MFA+) for Ukraine. The Facility will also benefit from the same EU Budget guarantee safeguards as the current MFA+ programme. Interest rate subsidies will be provided via the EU budget.
It is now for the European Parliament and the Council to examine the proposal. If the proposal is adopted, its impact on the funding volumes of the European Commission, which borrows on behalf of the EU, will be reflected in future semi-annual funding plans.
If the proposal is adopted before the end of 2023, the first funding plan which will take into account the new Ukraine facility would be the one for January-June 2024, to be published in December 2023.