The approval of the resolution by Members of the European Parliament for the establishment of a Credit Cooperation Mechanism and the provision of exceptional macro-financial assistance for Ukraine will enable the implementation of this initiative by the end of the year and ensure payments in 2025. This was stated by European Commissioner for Justice Didier Reynders in the European Parliament in Strasbourg, as reported by a correspondent from Ukrinform.
“G7 partners will announce their contributions to the $50 billion initiative for Ukraine in New York on October 25. We continue to work closely with our allies to secure their contributions to the credit mechanism,” he said.
According to Reynders, additional and urgent financial support is critically important for Ukraine.
"The approval by the MEPs will allow for the implementation of the proposal to create a credit cooperation mechanism with Ukraine and the provision of macro-financial assistance loans by next year,” the commissioner added, noting that such EU support should serve as a lifeline for Ukraine.
Reynders explained that the credit cooperation mechanism is a tool aimed at collecting superprofits derived from frozen Russian assets and providing them to Ukraine to repay loans from EU and G7 partners, as well as potentially other countries wishing to join the initiative “Emergency Loans for Accelerating Budget Inflows.”
He mentioned that this initiative also introduces some innovative features.
“First, Russia is held accountable for its actions. It is expected that the loan will not be imposed on the victim of aggression but will be repaid by the aggressor. Second, the European Commission's proposal allows for the provision of loans up to 35 billion euros with automatic adjustment. This means that the European Commission anticipates a mechanism for automatic correction if G7 creditors provide an amount that exceeds the total risk volume agreed with the EU,” he detailed.
Recall that G7 leaders committed in June 2024 in Naples to provide Ukraine with approximately $50 billion in so-called "emergency loans for accelerating budget inflows."
As reported by Ukrinform, debates are ongoing in the European Parliament in Strasbourg regarding the resolution to establish the Credit Cooperation Mechanism and provide exceptional macro-financial assistance for Ukraine. A vote on this document is scheduled to take place later on Tuesday.
Photo: RAR