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Iran Press TV

EU disburses 260-million-euro loan to Ukraine

Iran Press TV

Wed Nov 12, 2014 4:23PM GMT

The European Union has agreed to disburse 260 million euros (USD 333 million) in loan to Ukraine, as part of a previously agreed package worth 1.61 billion euros (USD 2.06 billion).

The European Commission, on behalf of the EU, disbursed the loan to Ukraine as part of the EU Macro-Financial Assistance (MFA) for the country, the Commission reported on its website Wednesday.

The loan is aimed at helping Ukraine with its financial needs and reforms, which include legislative harmonization with the EU, the European Commission said.

"This disbursement payment is a further concrete sign of Europe's solidarity with the Ukrainian people," EU Economy Commissioner Pierre Moscovici noted.

The EU has disbursed 600 million euros (USD 768 million) under two EU MFA programs this year.

Another 750 million euros (USD 960 million) remains available under the two programs, provided Ukraine shows satisfactory progress with the accompanying reforms, the Commission said.

This is while Ukraine requested an additional 2.55-billion-dollar loan from the European Union last month in order to pay off its gas debt to Russia.

Russia cut off gas deliveries to Ukraine after Kiev failed to make a 1.95-billion dollar payment of its 5.2-billion dollar debt before a June 16 deadline.

Tensions between Moscow and the government in Kiev have increased amid ongoing violence in east Ukraine.

Ukraine's mainly Russian-speaking regions in the east have witnessed deadly clashes between pro-Moscow forces and the Ukrainian army since Kiev launched military operations to silence pro-Russians in mid-April.

Western powers and the Kiev government accuse Moscow of having a hand in the crisis in eastern Ukraine. Russia denies the accusation.


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