The European Commission and the European Investment Bank (EIB) have agreed to make available an EU guarantee enabling the EIB to provide 100 million euros of new loans for Ukraine’s recovery, such as for municipal or energy infrastructure repairs (13 June).
This EU guarantee is one of the elements of an EU for Ukraine (EU4U) Initiative that the EIB approved in March 2023 and which also includes a EU4Ukraine Fund and a 100 million euros of technical assistance and advisory package from the EIB’s funds.
“The EU is stepping up support to address Ukraine’s fast recovery needs. In addition to our one billion euros for fast recovery to support critical sectors, the agreed EU guarantee allows EIB to lend to Ukraine an additional 100 million euros on very favourable terms. We are determined to bring back life to all the communities in Ukraine that suffer from Russia’s aggression,” said Ursula von der Leyen, President of the European Commission.
The EU Commission will use the European Fund for Sustainable Investment Plus (EFSD+), the financing arm of the Global Europe: Neighbourhood, Development and International Cooperation Instrument programme to guarantee up to 100 million euros of new EIB loans to Ukraine.
“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,” said Werner Hoyer, President of the EIB.
The loan agreements, made possible under the 26.7 billion-euro guarantee agreement signed between the EU Commission and the EIB in May 2022, are expected to be signed later in 2023 and then disbursed as soon as requested by Ukraine, the EIB said.
These loans will contribute to meet Ukraine’s financial needs for fast recovery priorities in 2023 in light of the updated Ukraine recovery and reconstruction needs assessment, the EU’s bank noted.