EU proposes €9 billion, 25-year loan to Ukraine

Should Ukraine default, EU member states will have to repay the loan

editor: REMIX NEWS
author: Index
European Commission President Ursula von der Leyen and Ukrainian President Volodimir Zelensky. (MTI/EPA/Serhij Dolzhenko)

The European Union is considering a €9 billion loan to Ukraine with politicians set to make a decision on the funding next week, according to news agency Bloomberg.

The term of the loan would be 25 years, but repayment would only begin after 10 years.

In the event of a bankruptcy, the Union would take over the debt and pay the amount from the budgets of the EU member states.

They added that the proposal would be finalized by experts this week and then decided on by the heads of state and government of the member states at next week’s EU summit. The decision will require the support of all 27 member states.

On the same day the possibility of the loan was disclosed, President of the European Investment Bank Werner Hoyer said that the post-war reconstruction of Ukraine could cost as much as €1.1 trillion.

“I’ve put a trillion out there because I saw figures in the public space that I consider completely unrealistic when I look at the level of destruction (in Ukraine),” Hoyer told at a press briefing in Frankfurt.

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