The European Commission, on behalf of the European Union, on June 10 raised €500 million on the capital markets to fund the first loan tranche for Ukraine under the new Macro-Financial Assistance (MFA II) programme.
The funding was raised via a tap of the April-issued EU 10-year €2.6 billion bond, increasing it to €3.2 billion, following an initial tap of €100 million on 14 May. The proceeds of today´s operation will be disbursed to Ukraine on 17 June, the settlement date of the operation.
MFA II is supporting Ukraine with loans of up to €1 billion and is implemented in parallel with the already approved programme of €610 million (MFA I), totalling a combined amount of up to €1.61 billion. A first disbursement of €100 million under MFA I was made to Ukraine on 20 May. See IP/14/570.
MFA for Ukraine
The new Macro-Financial Assistance (MFA II) programme is intended to assist Ukraine economically and financially in the current critical stage of its development. It is part of the package to support Ukraine announced by the European Commission on 5 March and endorsed by the European Council on 6 March.
Information on past MFA operations, including annual reports, can be found here.
