The European Investment Bank, the lending arm of the European Union, is proposing a financing structure previously used during the COVID-19 pandemic to help rebuild Ukraine, with investments of up to 100 billion euros ($104.3 billion). This is stated in the document, which was reviewed by the Reuters agency,
KYIV. UkraineGate. 4. July . 2022 | Political News .
Details
The EU-Ukraine trust fund will seek to attract initial contributions of 20 billion euros from EU countries and the EU budget in the form of grants, loans and guarantees.
The guarantees, in particular, will have a multiplier effect, which will have the goal of the emergence of infrastructure projects for a total amount of about 100 billion euros, which is about half of Ukraine’s urgent needs, the document says.
The EIB’s proposal is due to be released on Monday, on the first day of an international conference on the reconstruction of Ukraine in Switzerland, which aims to provide resources to Ukraine and help in post-war reconstruction.
The EIB is proposing a fund that will work in a similar way to the one used during the COVID-19 pandemic to guarantee financing for small and medium-sized businesses. It provides €25 billion, leading to the mobilization of €200 billion.
The EU trust fund can contribute to the restoration of bridges or the reconstruction of water supply or drainage systems, especially in cities whose population has increased due to migration from other parts of Ukraine after the Russian invasion of the country on February 24, the publication writes.
Projects can also be aimed at promoting Ukraine’s exports or its energy and digital infrastructure. The EIB or development banks such as KfW or DFC may use the fund or its guarantees for investments they monitor.
The fund is also intended to encourage private businesses that are likely to consider financing investments in Ukraine too risky.
Using a tool similar to the one previously used means that it can be implemented more quickly, so the initial investment can be approved before the end of the year. This will allow others to contribute and can be easily expanded, the publication notes.
The European Commission must first give its consent, and then a majority of EU countries must approve the plan. Later, the EU states will decide whether to contribute to the fund.
Addition
On July 4, the conference on the restoration of Ukraine opens in Lugano, Switzerland.
Source: Ukrgate
