Bloomberg: EU bureaucracy is obstructing a 1.5 billion euro loan to Ukraine

• A 1.5 billion euro loan for Ukraine is being blocked by the executive branch of the European Union because caution is preferred over the nation’s pressing needs.
• Bloomberg claims that in reference to two members of the European Commission, The loan was provided to Kyiv 
• Ukraine, the commission in this instance wants provisions at 70% of the amount, according to the officials.

A 1.5 billion euro loan for Ukraine is being blocked by the executive branch of the European Union because caution is preferred over the nation’s pressing needs.

Bloomberg claims that in reference to two members of the European Commission,

The loan was provided to Kyiv by the European Investment Bank, the lending arm of the EU, in order to aid the war-torn country as it deals with rising military expenditures and a decline in revenue. With provisions typically equaling 9% of the overall funding, the commission guarantees EIB loans for operations outside the EU.

However, as it did with a prior proposal of 1 billion euros for Ukraine, the commission in this instance wants provisions at 70% of the amount, according to the officials. According to them, the commission is making the request in case the nation is unable to pay back the money to the markets.

See also: As of July 1, Ukraine’s foreign exchange reserves stood at $22.8 billion.

According to a commission representative, the EU must ensure that it can cover damages in the case of a default by Ukraine. The official noted that the commission is looking for alternate solutions that depend on EU member states or the EIB to share a portion of the higher risks involved with these loans.

As previously reported, on May 18 the European Commission announced and on June 24 the European Council adopted a macro-financial support package for Ukraine totaling EUR 9 billion.

For the latest International News Follow BOL News on Google News. Read more on Latest International news on oldsite.bolnews.com