Ukraine’s parliament ratified on Thursday a €90 billion ($104 billion) loan agreement with the European Union with 298 votes, well ahead of the 226 votes required for a majority.
The loan, critical for supporting Ukraine’s finances, had been blocked until last month, when Hungary’s new government lifted its veto.
Under the deal, 8.35 billion euros in funds for general budget support this year are to be distributed in three instalments tied to Ukraine adopting tax changes that had already been demanded by the International Monetary Fund, although parliament has balked at some of the legislation.
One piece of legislation on raising taxes on parcels sent from abroad failed to pass parliament earlier this week.
The legislation also includes the introduction of a tax on income earned through digital platforms.
The IMF’s monitoring mission arrived in Kyiv on Wednesday for the first review of its $8.1 billion lending programme to Ukraine, approved in February.
Ukraine, now in its fifth year of fighting against a full-scale Russian invasion, channels the bulk of its domestic revenue to defence and relies on foreign financial aid to cover its social and humanitarian spending.
Parliament is also expected to vote on changes to the budget that would increase military spending thanks to the EU loan.
Source: Reuters
