Ukraine ratifies €90 billion EU loan to boost spending on defence
Yahoo • • world
Key Points:
- Ukraine's parliament ratified a €90 billion loan agreement with the European Union, enabling significant financing for defense and war efforts against Russia in its fifth year.
- President Zelenskiy praised the vote as a demonstration of unity and constructive cooperation, with the EU expected to disburse €3.2 billion in June and €45 billion throughout 2024.
- The funds will be allocated to national defense, energy resilience, and covering Ukraine's budget deficit, allowing defense spending to rise to a record $100 billion this year.
- EU loan payments are conditional on reforms, including anti-corruption measures and increased domestic revenues, with potential aid suspension if conditions are not met.
- The Ukrainian government is working to amend the 2026 budget to reflect increased international aid, aiming to reduce the budget deficit from 18.5% to 12.1% of GDP.