Economy ministry: Government to endorse Ukraine Facility Plan this March

In March 2024, the Cabinet of Ministers of Ukraine is planning to endorse the Ukraine Facility Plan, and then it will be submitted for the approval of the European Commission.

The relevant statement was made by the Ukrainian Economy Ministry, an Ukrinform correspondent reports.

“The approval of the Ukraine Facility program will strengthen our macroeconomic stability and bring Ukraine closer to membership in the European Union. The regulation contains the final conditions of the program, in particular regarding the Ukraine Facility Plan, which will be endorsed by the Government this March and submitted for the approval of the European Commission,” Ukrainian First Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

The Ukraine Facility includes three main components: EUR 38.27 billion in direct budget support, including EUR 33 billion in loans and EUR 5.27 billion in grants; EUR 6.97 billion as a special investment instrument to cover risks in priority sectors; and EUR 4.76 billion in technical support for reforms and interest coverage on loans, including those obtained previously.

The Ukraine Facility program also provides for a transitional financing mechanism that will allow Ukraine to receive support for the state budget even before the program is fully launched.

Currently, in cooperation with European partners, the Ukrainian government is working to sign a corresponding memorandum. The document is expected to be signed this March.

The basis for budget support under the program is the Ukraine Plan, providing for the implementation of structural reforms in the public sector, a number of economic reforms intended to develop the business climate and entrepreneurship, as well as steps to develop the priority sectors that can ensure a rapid economic growth.

As soon as final requirements are included in the Ukraine Facility Plan, it will be endorsed by the Ukrainian government and submitted for the approval of the European Commission. The European Union is expected to approve the Plan in April 2024, which would allow the Ukraine Facility to become fully operational.

Photo: Ukrainian Economy Ministry