Ukraine Secures €90 Billion EU Loan to Boost Defence and Economic Resilience

Ukraine's parliament has ratified a €90 billion loan agreement with the European Union, aiming to bolster defense and economic resilience. President Zelenskiy highlighted unity and thanked European partners. The loan will primarily fund national defense, strengthen energy resilience, and cover budget deficits, while ensuring macro-financial stability amid ongoing reforms.

Ukraine's parliament has approved a €90 billion loan from the European Union, paving the way for record funding towards defense and ongoing conflict with Russia. President Volodymyr Zelenskiy hailed the unity in parliament and thanked European allies, emphasizing the critical nature of this financial support to bolster Ukraine's resilience.

The European Union's final approval of the loan last month ended delays caused by Hungary's veto, easing pressure on Ukraine's budget. European Commission President Ursula von der Leyen noted the vote clears the way for first disbursements. Prime Minister Yulia Svyrydenko indicated the funds will reinforce national defense and budget stability.

Disbursement is contingent on reforms, echoing conditions from the IMF. These involve enhancing transparency and fairness in business practices. Some proposed reforms, like increased taxes for entrepreneurs, are facing resistance in parliament due to concerns over potential economic burdens on small businesses.