Latest news from Ukraine, vl-news.com. Now, in order to allocate the funds, the parties must agree on a memorandum of understanding.
The European Commission expects to wrap up the negotiations within a few weeks. In this case, the first tranche of the financial aid of 600 million euros will be sent to Kiev as early as spring.
It is generally assumed that all the funds will be allocated in three tranches. The first two will be transferred before the end of the year, and the third will be allocated in 2016. The EU will borrow the money from a third party and will provide it to Ukraine at the same interest rate.
This program became the second for the EU in its effort to provide financial support to Ukraine. Under the first program, Kiev has already received 1.61 billion euros.
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According to latest news in Ukraine, in early March, the IMF approved a program of financial assistance to Ukraine. In the next four years, the organization will allocate to Kiev 17.5 billion dollars in loans.
On February 12, the IMF Managing Director Christine Lagarde said that the total amount of financial assistance to Ukraine will amount to 40 billion dollars. The money will be allocated over four years and will come from different sources.
Last year, the country’s foreign debt reached 30 billion dollars. This is a quarter GDP of Ukraine. The Prime Minister Arseny Yatsenyuk previously reported that in 2015 Kiev must pay off 11 billion dollars in debts. At the same time, Ukraine’s gold and foreign currency reserves have fallen to $ 5.6 billion.
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