The macro-financial loan endorsed by the European Parliament is the second, and largest, tranche of a EUR 9 billion EU support package, of which EUR 1 billion has already been disbursed, according to the europarl.europa.eu website.
The EU legislature said on its website that the loan was being extended to the government in Kyiv "on highly favourable terms."
Ukraine’s external financing needs have grown rapidly due to the Russian invasion, the European Parliament said. Besides suffering tremendous damage to roads, bridges, factories, houses, hospitals and other infrastructure, the country has also lost access to international financial markets, it added.
The loan is also intended to contribute “to the public debt sustainability of Ukraine and its ability to ultimately be in a position to repay its financial obligations,” according to the proposal signed off by MEPs.