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| EU prepares contingency plan to provide Ukraine with 20 billion Euros. (Source: Topwar) |
The plan was put forward despite opposition from Hungarian Prime Minister Viktor Orban.
The plan calls for EU member states to provide guarantees for the bloc's budget, allowing the European Commission (EC) to lend up to 20 billion euros on capital markets to Kiev by 2024, sources told the media.
"This would help the EU overcome (Hungarian Prime Minister) Viktor Orban's objections. Discussions are still underway and the final figure will be determined based on Ukraine's needs," the source said.
Ukraine has received more than $68.5 billion in budget support since the conflict with Russia broke out in February 2022, according to data from the Ukrainian Finance Ministry.
Kiev spends all its revenues on the defense sector and the military, while general public sector expenses are largely covered by aid from the West.
Next year, the Ukrainian government will again need to pump in financial support to handle social payments, salaries for state employees and pensions for millions of Ukrainians.
The government expects a budget deficit of about $43 billion by 2024 and plans to cover it with domestic borrowing and financial aid from Western partners.
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