Today in Riga, Ukraine and the European Union signed the
Memorandum of Understanding and the Loan Agreement related to the third
Macro-Financial Assistance (MFA) package from the EU totaling
€1.8 billion. The documents were signed on behalf of Ukraine by the Minister of
Finance of Ukraine Natalie Jaresko and the Governor
of the National Bank of Ukraine Valeriya Gontaryeva. Vice-President of the European Commission Valdis Dombrovskis signed on
behalf of the European Union.
The new MFA package will be provided as a part of a broader
package of financial support for Ukraine from its bilateral and
multilateral partners. The aim of the EU financial package is to help
Ukraine to stabilize its financial system, to improve its balance of payments,
and to implement reforms.
It is the third Macro-Financial Assistance package provided
to Ukraine by the European Union. The EU has already provided financing for a
total amount of €1.61 billion euro in two previous MFA programs. Together
with the new program the volume of financing on behalf of the EU will be equal
to €3.41 billion. This is the largest volume of financial support for a non-EU
“On behalf of the Government of Ukraine and the Ukrainian
people, I would like to express my gratitude to the European Union for its crucial
support. This Macro-Financial Assistance package is a testament to the
EU’s belief that Ukraine can steer through this challenging period and progress
along its path of reform and transformation,” the Minister of Finance, Natalie Jaresko, stated on the occasion of the document’s signing.
She underlined that the Government of Ukraine is fully committed to working
side by side with European partners.
Ukraine will receive the first tranche of the
third Macro-Financial Assistance program worth €600 million in the second half
of June 2015, after the Memorandum and Loan Agreement is ratified by Verknovna Rada of Ukraine and the IMF Executive Board
approves the second tranche of the Extended Fund Facility Program.
Key facts about Macro-Financial Assistance (MFA):
The third Macro-Financial Assistance program of the EU
provides up to €1,8 billion in the form of a
The MFA is provided to the EU partner countries that
experience serious balance of payment difficulties.
The EU Macro-Financial Assistance is complementary to the
Program of Cooperation between Ukraine and International Monetary Fund Extended
The MFA is provided due to the successful implementation by
Ukraine of the current Extended Fund Facility Program with the International
The Memorandum of Understanding defines preconditions for
funds allocation of each tranche of assistance and the Loan Agreement defines
technical particularities of loan provision.
terms of interest of the loan will be determined when the European Commission,
which has the highest credit rating (AAA), borrows money on the financial
markets. This will then be lent at the same rate of interest to Ukraine.