Novak: Western Aid minimum

Photo: Andrew Novak / Facebook

The head of the Committee of economists of Ukraine Andriy Novak in the comment to the edition “GORDON” called “positive signal a” decision of the EU Council on the allocation of macro-financial assistance to Ukraine.

“€1 billion of aid from the EU will not significantly affect the economic situation in Ukraine. But this is a positive signal. He suggests that the Western partners continue to support us and Ukraine can count on their help. At the same time, I must say that Western aid is minimal. They do not see that in Ukraine, their money is used effectively. If the situation was reversed, we could expect a more serious financial investment. But under the current government and the President should not wait” – said the economist.

According to him, the decision of the EU Council is largely dependent on the position of the IMF.

“This assistance is a good signal because in the next three years we will have a peak external debt payments. Without the help from EU, IMF and other structures of Ukraine will not be able to service its external debt. And that would mean a default. So we need a new infusion. The IMF saw that Ukraine fulfills the requirement for creating an anti-corruption court and sent a signal about readiness to continue cooperation with Kiev. And it is on this signal is responded, the EU decided to provide Ukraine with assistance. The money will be allocated in stages. And if Kiev will cease to perform its obligations, then the funding can be suspended,” concluded Novak.

On 26 June the Council of the European Union has approved the allocation to Ukraine of €1 billion macro-financial assistance.

“European Pravda” notes that after today’s decision the European Commission, in consultation with the Council of the EU, will prepare a Memorandum on the provision of assistance. The document requires ratification by the Ukrainian Parliament.

Formal legislative decision, not the EU opens the way for immediate financial assistance. This will occur after the conditions that will be spelled out in the Memorandum.