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The EU Economic and Financial Affairs Council to discuss financial aid to Kiev in Brussels

According to TASS agency's source, the EU Ministers of Finance would consider increasing the additional macro-financial assistance to Ukraine from €1.8 to 2.5 billion

© AP Photo/Yves Logghe

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Austerity policy, external support can help overcome crisis in Ukraine — National Bank

BRUSSELS, January 27. /TASS/. On Tuesday the EU Economic and Financial Affairs Council are going to discuss in Brussels potential financial support measures for Ukraine, according to Jeroen Dijsselbloem, the Minister of Finance of Netherlands.

As the conflict escalation made the situation more urgent, he said, they would discuss the exact measures to support Ukraine financially.

According to TASS agency's European diplomatic source, the EU Ministers of Finance would consider increasing the additional macro-financial assistance to Ukraine from €1.8 to 2.5 billion.

On January 8, the European Commission announced its readiness to grant Ukraine further macro-financial assistance in the amount of €1.8 billion as "medium-term loans." As the EC emphasized, the new program of financial assistance to Kiev would be "linked to certain reform actions." As soon as the decision to grant Ukraine macro-financial assistance is approved, the country will have to continue the current cooperation program with the IMF and to implement financial and economic policy harmonized in a joint memorandum of understanding to be signed by the EC and Ukraine, as a provision of the assistance.

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Under implementing financial and economic policy, the EC means "further fiscal consolidation, continuation of the comprehensive reforms in the energy and banking sectors, as well as improving overall macroeconomic management." According to the EC, "It will also be important to strengthen economic governance, transparency and pursue judicial reforms and the fight against corruption in order to improve conditions for business activity and sustainable growth."

If the program is approved by the European Parliament and the EU Council, it can be carried out in three tranches during the period of 2015 and the beginning of 2016.

Last year the EC implemented two financial assistance programs which gave Ukraine around €1.8 billion as subsidized loans. Subsequently, Kiev requested an additional sum of €2 billion.

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Ukraine EU Financial aid

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