MFA+: A new package of up to €18 billion to support Ukraine in 2023

In line with the EU’s commitment to provide stable, regular and predictable financial assistance support to Ukraine, the European Commission – on behalf of the EU – will support Ukraine in 2023 with up to €18 billion in highly concessional loans under a new Macro-Financial Assistance + (MFA+) programme. The Commission expects to carry out the first disbursement under the programme early in 2023.

The Commission will fund MFA+ by issuing EU-Bonds under its new unified funding approach. This will enable the Commission to disburse funds to Ukraine in a more flexible manner – using its central funding pool - in response to urgent needs. Ukraine will also benefit from more concessional loans relative to previous programmes, with a maximum repayment period of 35 years, beginning in 2033.

The 2023 borrowing for Ukraine will be fully backed by the EU Member States commitments to contribute resources to the EU budget in the same way as loans to EU Member States under programmes such as SURE and EFSM. The bonds issued for the UKR MFA+ loans will therefore have the same credit quality as all other EU issuances. The EU will also cover Ukraine’s interest rate costs through additional targeted payments by Member States to the EU budget.

The MFA+ instrument will be accompanied by reforms to help Ukraine advance on its path to becoming a member of the EU, including anti-corruption and judicial reforms, respect of the rule of law, good governance and modernisation of national institutions.

The MFA+ package follows on from the €7.2 billion in emergency MFA loans the Commission provided to Ukraine in 2022. Prior to that, the EU has provided over €5 billion to Ukraine through five MFA programmes since 2014.