{"id":643110,"date":"2025-12-19T23:20:34","date_gmt":"2025-12-19T23:20:34","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/643110\/"},"modified":"2025-12-19T23:20:34","modified_gmt":"2025-12-19T23:20:34","slug":"eu-to-pay-e3b-a-year-in-interest-for-ukraine-loan-politico","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/643110\/","title":{"rendered":"EU to pay \u20ac3B a year in interest for Ukraine loan\u00a0 \u2013 POLITICO"},"content":{"rendered":"

Czechia, Hungary and Slovakia will not join the bloc\u2019s other 24 countries in sharing the debt burden, but agreed not to obstruct Ukraine\u2019s financing needs. As part of the carve-out deal, the Commission will propose a so-called enhanced cooperation early next week, giving the 24 countries a legal platform to raise joint debt.<\/p>\n

Many of the hallmarks of the \u20ac210 billion financing package<\/a> for Ukraine will be transferred to the new plan for common debt. These include payout structures in tranches, anti-corruption safeguards, and an outline for how much money should be spent on Kyiv\u2019s military and the country\u2019s budgetary needs.<\/p>\n

European governments resorted to joint debt after failing to agree on a controversial plan to leverage frozen Russian assets across the bloc.<\/p>\n

The new plan would provide Ukraine with \u20ac45 billion next year, handing Kyiv a crucial lifeline as it enters its fifth year of fighting. The remaining funds would be disbursed in 2027.<\/p>\n

Cost of borrowing<\/strong><\/p>\n

The new plan won\u2019t come cheap. The EU is expected to pay \u20ac3 billion annually in interest from 2028 through its seven-year budget, which is largely financed by EU governments, senior Commission officials told reporters on Friday. Interest payments would begin in 2027, but would cost only \u20ac1 billion that year.<\/p>\n

Ukraine will only have to repay the loan once Russia ends the war and pays war reparations. That seems unlikely, which means the EU could <\/strong>continuously roll over the debt or use frozen Russian assets to repay it.\u00a0<\/p>\n

That would require another political agreement among EU leaders, as Belgium is strongly opposed to using the frozen assets, most of which are held in the Brussels-based financial depository Euroclear.<\/p>\n

It was Belgium\u2019s resistance that ultimately forced leaders to pursue common debt. Belgian Prime Minister Bart De Wever wanted unlimited financial guarantees against the Russian asset-backed loan, a demand too great for his peers.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Czechia, Hungary and Slovakia will not join the bloc\u2019s other 24 countries in sharing the debt burden, but…\n","protected":false},"author":2,"featured_media":643111,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7654],"tags":[17466,331,15856,1789,33108,52871,2000,299,155245,20327,18421,1197,2441,332,7339,2663,657,335],"class_list":{"0":"post-643110","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ukraine","8":"tag-asset-management","9":"tag-banks","10":"tag-bart-de-wever","11":"tag-belgium","12":"tag-economic-governance","13":"tag-economic-sanctions","14":"tag-eu","15":"tag-europe","16":"tag-european-monetary-union","17":"tag-eurozone","18":"tag-finance-and-banking","19":"tag-investment","20":"tag-markets","21":"tag-russia","22":"tag-russia-sanctions","23":"tag-sanctions","24":"tag-ukraine","25":"tag-war-in-ukraine"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115748800173899178","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/643110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=643110"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/643110\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/643111"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=643110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=643110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=643110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}