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Reuters.
Polish media: Hungary blocks 500 million euro EU military aid package for Ukraine. Hungary has blocked half a billion euros worth of in military aid in the seventh such package allocated to Ukraine as part of the European Peace Facility, a high-ranking E.U. diplomatic source told the Polish RMF FM.
6.1.3 Budget dynamics - funding
Prime Minister reveals top financial aid amounts in 2022. Ukraine received UAH1.1 trillion ($31bn) in non-military financial aid from international partners in 2022, Prime Minister Denys Shmyhal said in January.
The IMF is considering options to provide Ukraine with a $16B aid package. According to people familiar with the matter, as reported by Bloomberg, the International Monetary Fund is exploring a loan for Ukraine worth as much as $16B to help cover the country’s needs and provide a catalyst for more international funding. The program hinges on conditions including an endorsement from the G7 nations and Ukraine’s donors and creditors, to ensure the sustainability of the country’s debt, according to the sources. If approved, it would likely involve a disbursement of as much as $7B in the first year. There’s hope the plan will be agreed to by the end of March, with the first tranche coming as early as April.
Ukraine and the EU have signed a memorandum on €18B in macro-financial aid; the first €3B will arrive on January 17. European Commission President Ursula von der Leyen announced that the first €3B of macro-financial assistance to Ukraine will arrive on January 17. Preferential loan funds will be transferred to Ukraine’s state budget during 2023 in equal parts, contingent on Ukraine's fulfillment of the agreed-upon conditions. According to the Ministry of Finance, the money will be directed to the state budget's priority social and humanitarian expenditures. In particular, these funds are earmarked for salaries of employees of educational institutions and institutions, medical institutions, payment of pensions and financing of individual state social assistance programs, support for low-income families, disabled children, and those disabled since childhood, and IDPs. These funds will also contribute to preserving Ukraine's financial and economic stability.
Ukraine receives 3 billion euros in first package of EU financial assistance commitment. The financing will help Ukraine meet its budgetary needs through 2023, including making payments for public sector employees and social services, as well as maintaining macroeconomic stability.
The EU agrees on the seventh €500M tranche of military aid.On January 23 the European Union's foreign policy chief, Josep Borrell, outlined the bloc's plans to continue supporting Ukraine, saying it had reached an agreement to provide an additional €500M and additional military training assistance worth €45M dedicated to a military training mission for Ukrainian forces. Hungary was going to block the seventh tranche of military aid from the European Union, but today it rescinded its veto. Hungary opposes any decision that could lead to a continuation or potential war escalation. That brings the EU's total military support for Ukraine via the European Union's intergovernmental
33 UKRAINE Country Report February 2023 www.intellinews.com