EU to go into debt for Ukraine – Politico

EU is reportedly considering going into debt to fund Ukrainian government operations after Kiev begs for money to pay salaries and pensions Read Full Article at RT.com

EU to go into debt for Ukraine – Politico
9 May, 2022 21:42 HomeWorld News

EU to go into debt for Ukraine – Politico

Brussels is reportedly considering a €15 billion bond emission to finance Ukrainian government operations

The European Union is planning to fund the operating expenses of the government in Kiev for at least three months, Politico Europe reported on Monday, citing diplomatic sources. The €15 billion would be raised through a new debt emission, using the template established for Covid-19 relief.

has told the International Monetary Fund (IMF) he needed $7 billion per month ($1 = €0.95) to pay salaries, pensions and other government expenditures. The US has pledged to provide a third of that sum for the next three months. The EU intends to make up the difference with special bonds, according to Politico.

SURE, the program used to raise €100 billion in aid for EU citizens who lost their jobs due to the Covid-19 lockdowns. That debt was then securitized as bonds ranging from 5-30 years.

“Whenever there’s a problem with money, [the Commission] says SURE!” Politico quoted a diplomat as saying.

“chip in” as well, leaving the EU with less of a debt burden. France has also proposed that heads of EU states discuss the problem in a summit meeting at the end of May.

Meanwhile, EU foreign policy chief Josep Borrell has proposed another option to fund rebuilding Ukraine: confiscating the Russian foreign exchange reserves currently frozen under EU sanctions. Borrell pointed to the example of Washington confiscating the funds of the Afghan central bank after the US withdrew from Afghanistan and the Taliban took over. It is “full of logic” to use Russian assets the same way, Borrell told FT in an interview published on Monday. 

“highly unusual,” the Taliban denounced it as theft, and even the former US-backed president of Afghanistan, Hamid Karzai, termed it “unjust and unfair and an atrocity against Afghan people.”

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