Malta is set to shoulder nearly €8 million in interest payments by 2028 after EU leaders approved a €90 billion loan to help Ukraine plug its budget shortfall.
Early Friday, 24 out of 27 EU countries (Czechia, Hungary, and Slovakia opted out) agreed to raise the €90 billion on the open market and lend it to Ukraine, with the EU budget acting as a guarantee as reported by Times of Malta.
This way, countries won’t have to pay upfront, but they will contribute to the interest based on their economic strength.
Sources suggest Malta will pay around €2.65 million in interest in 2027 and €5.3 million in 2028. Beyond that, it’s unclear what comes next, as Ukraine may not have to fully repay the loan, European Commission President Ursula von der Leyen has hinted repayments could depend on Moscow compensating Ukraine for the damages caused.
The deal follows tense negotiations. Malta and other countries had opposed the original plan to use frozen Russian assets to fund Ukraine, citing legal concerns, frozen funds aren’t supposed to be spent.
Belgium, which holds a large chunk of the frozen assets, demanded unlimited guarantees from EU partners in case Russia claimed the funds back. Had that happened, Malta could have been on the hook for €210 million.
In the end, EU leaders went for a safer alternative, borrowing the funds on the open market and letting Ukraine draw them over two years. Belgian Prime Minister Bart De Wever described the original plan as “risky and unstable” and said the new deal is a relief for everyone involved.
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