Ukrainian Parliament Approves €90bn EU Loan Package

Ukraine’s parliament on Thursday ratified a €90bn loan agreement with the European Union aimed at supporting the country’s finances and wartime spending.

President Volodymyr Zelensky submitted the macro-financial assistance package to lawmakers after signing a memorandum with the EU last week.

The deal had been blocked for months by Hungary, whose new government recently lifted its veto. Ukraine could receive €8.35bn this year in three installments, although the payments remain conditional on reforms and fiscal measures required by the International Monetary Fund (IMF).

The measures include new rules for taxing income generated through digital platforms.

At the same time, an IMF monitoring mission has arrived in Kyiv to assess Ukraine’s compliance with the conditions attached to its existing $8.1bn loan program.

Ukraine is now in its fifth year of financing most military expenditures from domestic resources, while social and humanitarian spending continues to rely heavily on foreign assistance.

Parliament is also expected to debate increased defense spending financed through the new European loan package.

(reuters, max)