BRUSSELS, Dec 10 – The European Commission, on behalf of the European Union, has disbursed EUR 600 million to Ukraine under its coronavirus (COVID-19) related macro-financial assistance (MFA) program.

"Ukraine received the first tranche under a new EU macro-financial assistance program from the European Commission with a nominal amount of EUR 600 million in the form of a long-term loan with a repayment period in June 2035 and at a yield rate of 0.125% per annum," the Finance Ministry said in a press release on its website.

"To provide the tranche, the European Commission issued bonds with a negative yield of minus 0.143%, due to which, after deducting the issuance commissions, Ukraine received EUR 623.5 million," the report says.

"The funds received will be used to finance state budget expenditures, which will help maintain financial stability in Ukraine," Finance Minister Serhiy Marchenko said.

Commenting on the payout, European Commission Executive Vice President Valdis Dombrovskis said: "Ukraine remains high on the European agenda. It is our neighborhood country and it belongs to Europe. We are committed to offering political, financial and technical support, especially during this time of crisis as a response to COVID-19 pandemic and overcome the social and economic consequences," the press service said, citing Dombrovskis.

He also said that this EUR 600 million first tranche of emergency macro-financial assistance "confirms the EU's solidarity with Ukraine and our continued close cooperation." "I offer my best wishes to Ukraine's government for 2021 in carrying through its reform agenda, to improve living standard, continue fighting against corruption and bring Ukraine closer to the EU," the EC Vice President said.

The European Commission said that this disbursement will contribute to macro-financial stability in Ukraine, "while allowing it to allocate resources towards mitigating the severe negative socio-economic consequences of the coronavirus pandemic."

President Volodymyr Zelensky thanked the European Union, Head and Executive Deputy Head of the European Commission Ursula von der Leyen and Valdis Dombrovskis for providing macro-financial assistance to Ukraine. (om/ez)