The European Commission and the European Investment Bank (EIB) have agreed to make available an EU guarantee enabling the EIB to provide €100 million of new loans to Ukraine for fast recoveries, such as for municipal or energy infrastructure repairs. This EU guarantee is one of the elements of the EU for Ukraine (EU4U) Initiative that the EIB approved in March 2023 and which also includes the EU4Ukraine Fund and a €100 million technical assistance and advisory package from the EIB’s own funds.
Commission President Ursula von der Leyen said: “The EU is stepping up support to address Ukraine’s fast recovery needs. In addition to our €1 billion for fast recovery to support critical sectors, the agreed EU guarantee allows EIB to lend to Ukraine an additional €100 million on very favorable terms. We are determined to bring back life to all the communities in Ukraine that suffer from Russia’s aggression.”
EIB President Werner Hoyer said: “Ukraine cannot wait. Investments are needed today to keep the economy of Ukraine running, repel Russia and bring the EU and Ukraine closer together. The cooperation with the European Commission is vital for the EIB to operate in Ukraine as the EU Bank and deliver on the EU commitments. The guarantee will enable us to provide EUR 100 million of long-term financing and will enhance the impact of our Initiative, which we are implementing with a strong pipeline of projects also under the EU4Ukraine Fund and technical assistance. We will help Ukraine rebuild and restore essential services, enable businesses to invest and survive, and support the path towards EU accession.”
The Commission will use the European Fund for Sustainable Investment Plus (EFSD+), the financing arm of the Neighbourhood Development and International Cooperation (NDICI) -Global Europe to guarantee up to €100 million of new EIB loans to Ukraine.
The loan agreements, made possible under the €26.7 billion guarantee agreement signed between the European Commission and the EIB in May 2022, are expected to be signed later in 2023 and then disbursed as soon as requested by Ukraine. These loans will contribute to helping to close Ukraine’s financial needs for fast recovery priorities in 2023 in light of the updated Ukraine recovery and reconstruction needs assessment.
See also: 🔴 LIVE UPDATES | Humanitarian response to Ukraine crisis