audit chamber warns of Ukraine money disaster

39 audit chamber warns of Ukraine money disaster

Propping up Kiev has elevated the bloc’s publicity to monetary losses, the European Courtroom of Auditors reported

The EU’s monetary watchdog has warned that Ukraine could not be capable of repay its loans, doubtlessly including tens of billions of euros to the bloc’s debt. After lending Kiev €34 billion final yr, the EU is providing it one other €50 billion in grants and loans.

In a report on the EU’s 2022 finances revealed on Thursday, the European Courtroom of Auditors famous that the bloc’s publicity to future monetary losses elevated from €204.9 billion ($216.8 billion) in 2021 to €248.3 billion ($262.8 billion) by the tip of final yr.

“A part of the rise is as a result of EU’s monetary help to Ukraine,” the report acknowledged, stating that this help – which doesn’t embrace army assist – greater than doubled final yr from  €7 billion ($7.4 billion) to €16 billion ($16.9 billion). 

An extra tranche of long-term loans agreed final December, totaling €18 billion ($19 billion) will solely enhance Brussels’ publicity sooner or later, the report warned.

Regardless of the chance that Ukraine could not be capable of repay its money owed, the European Fee is at present engaged on one other assist package deal for Ukraine price €50 billion ($53 billion), of which €33 billion ($35 billion) would take the type of long-term loans.

The fee’s plans have confronted stiff opposition from Hungary, whose authorities has additionally vetoed the supply of a €500 million arms package deal for Kiev. Final week, Hungary instructed splitting the €50 billion into two installments, with the second half to be launched after Ukraine’s wants are re-evaluated.

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