The European Commission plans to use an instrument for issuing debt securities to overcome temporary financial and economic challenges facing Ukraine during the war
This was reported on Monday by the European edition POLITICO with reference to three diplomats familiar with the matter, Ukrinform reports.
The European Commission plans to issue new EU debt to cover Ukraine’s short-term financial need over the next three months, estimated at 15 billion euros.
According to sources, the plan will be officially announced on May 18.
At the same time, it is noted that the government of Ukraine and the IMF agreed at the end of April that the Ukrainian economy during the war requires about 5 billion euros monthly over the next three months. This amount is needed to pay off the budget deficit, defense spending and keep the economy functioning, including social benefits.
As reported, the United States agreed to offset the cost of 5 billion euros, which is a third of the minimum required. That is, another 10 billion euros are needed. The European Commission did not give details on how much they are going to raise funds, and what share each country will have in this.
Several countries, notably Germany, Austria and Greece, have asked the European Commission for alternative funding options before the plan is officially unveiled on May 18. At the same time, it is not excluded that other countries that are not members of the European Union, including Japan, Norway, and the United Kingdom, may join the initiative.