Thu. Jul 18th, 2024

Brussels is reportedly concerned that Kiev could default on a €1.5 billion loan

The European Commission has blocked a loan to Ukraine, citing concerns over the country’s ability to repay, Bloomberg reported on Thursday.

The €1.5 billion ($1.52 billion) loan was offered to Kiev by the bloc’s lending arm, the European Investment Bank (EIB), to help the country keep its economy going. However, the European Commission’s budget unit blocked the move because of “concerns” over Ukraine’s “financial reliability,” Bloomberg quoted unnamed officials as saying.

The commission wants provisions at 70% of the total funding instead of the usual 9% for operations outside the EU, Bloomberg explained, in case Ukraine defaults on its debt.

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