PM Denys Shmyhal / Photo from UNIAN
This EUR 1.2 billion disbursement for Ukraine is the largest one provided by the EC under the macro-financial assistance program that is exceptional in nature.
Ukraine and the European Commission on July 23, 2020, signed a Memorandum and a Loan Agreement during a working visit of Ukrainian Prime Minister Denys Shmyhal, Ukrainian Finance Minister Serhiy Marchenko, and newly appointed Governor of the National Bank of Ukraine (NBU) Kyrylo Shevchenko to Brussels.
"I thank our European partners for their strong support of the country. This is an important step that will support the macro-financial stability of the state. It is aimed at ensuring Ukrainian citizens' well-being," Shmyhal said on Facebook on July 23.
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According to the official, a EUR 1.2 billion disbursement for Ukraine is the largest one provided by the European Commission under a macro-financial assistance (MFA) program that is exceptional in nature and is envisaged for 10 countries to overcome the negative consequences of the pandemic.
MFA is also conditional on the existence of a non-precautionary credit arrangement with the IMF and a satisfactory track-record of implementing IMF programme reforms.
IMF money
The IMF's Executive Board on June 10, 2020, approved an 18-month Stand-By Arrangement for Ukraine with funding equivalent to SDR 3.6 billion (about US$5 billion), aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.
The first disbursement worth US$2.1 billion under the new program will be channeled into the national budget.