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Title: Zelensky Says EU's €18 Billion Aid Is What "True Solidarity" Looks Like
Source: [None]
URL Source: https://www.zerohedge.com/geopoliti ... aid-what-true-solidarity-looks
Published: Nov 10, 2022
Author: Tyler Durden
Post Date: 2022-11-30 10:44:01 by 3-Dee
Keywords: None
Views: 135

Zelensky Says EU's €18 Billion Aid Is What "True Solidarity" Looks Like

BY TYLER DURDEN

THURSDAY, NOV 10, 2022 - 04:45 AM

What's not to like about a massive interest-free loan that won't have to be paid back for decades, or maybe never? Ukraine's President Volodymyr Zelensky says it shows "true solidarity"...

"Grateful to the European Commission and President Ursula von der Leyen for announcing 18 billion-euro financial aid package for 2023," Zelensky announced on social media Wednesday. "This shows true solidarity of the EU."

The EU Commission President explained in a statement that the whopping €18 billion support package for 2023 is being mulled to prepare the ground for the reconstruction of Ukraine as it continues on the path toward EU membership, after it was granted candidate status on June 23 of this year.

As Politico reported earlier, "Commissioners meeting today for their weekly College meeting will propose a new EU instrument to finance €18 billion (around €1.5 billion a month) in subsidized loans for Ukraine for 2023, according to a draft regulation also obtained by Paola."

The draft regulation reads as follows: "In order to finance the support under the Instrument in the form of loans, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions."

The Commission would reportedly link interval disbursement of the funds based on commitments from Kyiv upholding 'rule of law' requirements and making democratic reforms, again as preparation for potential future EU admission.

According to further details, "Though the funds would officially be in the form of loans (aside from additional voluntary contributions by EU governments), those loans would have long maturities of up to 35 years and require no repayment of the principal before 2033. Interest would be subsidized by EU member countries."

This week actor Sean Penn presented Ukrainian President Volodymyr Zelensky with his own Oscar.

The proposed package comes after last Thursday Ukrainian parliament approved a draft so-called "victory budget" for 2023, with a "record deficit" of $38 billion, including a little over $27 billion for the nation's armed forces. Naturally the bulk of this is expected to be filled by donors, the IMF, United States and European Union.

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