Brussels is reportedly considering issuing 15 billion euros of bonds to finance Ukraine’s government activities.
The European Union plans to fund the Kiev government’s operating expenses for at least three months, Politico Europe reported Monday, citing diplomatic sources. Using the Covid-19 relief template, নতুন 15 billion will be raised through new debt issuance.
Ukrainian President Volodymyr Zelensky has told the International Monetary Fund (IMF) that he needs $ 7 billion ($ 1 = 9 0.95) a month to cover salaries, pensions and other government spending. The United States has promised to provide one-third of this amount over the next three months. According to Politico, the EU wants to differentiate between special bonds.
The European Commission (EC) on Friday briefed ambassadors of member countries on the plan, according to the outlet. It involves lending using guarantees from EU member states. The scheme, created along the lines of SURE, is used to raise 100 billion in aid for EU citizens who lost their jobs due to the Covid-19 lockdown. That loan was then secured as a 5-30 year bond.
“Whenever there is a problem with money, [the Commission] Sure! ” Politico quoted a diplomat as saying.
According to the outlet, the plan could be unveiled as early as May 18, and at least three countries – including Austria, Germany and Greece – have called for alternative options. They hope that non-EU countries like Japan, Norway and the United Kingdom will do the same “Chip in” At the same time, leaving the EU with less debt burden. France has also proposed that EU heads of state discuss the issue at a summit in late May.
Meanwhile, EU foreign policy chief Josep Borrell has offered another alternative to funding Ukraine’s reconstruction: seizure of Russia’s foreign exchange reserves, currently under EU sanctions. Borrell pointed to the example of Washington seizing funds from the Afghan central bank after the US withdrew from Afghanistan and the Taliban took power. This is “Full of logic“To use Russian resources in the same way,” Borrell told FT in an interview published Monday.
In February, US President Joe Biden confiscated half of the ব্যা 7 billion in assets of The Afghanistan Bank, a US financial institution, saying it would go to compensate victims of the 9/11 terrorist attacks, leaving the other half. “For the benefit of the Afghan people and for the future of Afghanistan“It simply came to our notice then.
The New York Times described the move “Very unusual,” The Taliban has condemned it as theft, and even former US-backed President Hamid Karzai of Afghanistan has said so. “Unjust and unjust and atrocities against the Afghan people.”
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