EU Commission working on proposal for joint borrowing to help finance Ukraine

European Union flags fly outdoors the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves Herman

BRUSSELS, May perhaps 10 (Reuters) – The European Fee is considering new joint personal debt issuance by the 27-country bloc, two EU officers reported, to deal with Ukraine’s liquidity hole of 15 billion euros ($15.9 billion) more than the next three months, however Germany is sceptical to the thought.

A Fee proposal is to be released on May 18, a single EU official mentioned. The new joint EU borrowing, if agreed, could be centered on the EU’s Absolutely sure scheme for financing unemployment rewards through the COVID-19 pandemic, officers claimed.

This would imply that Ukraine would get quite cheap loans from the bloc, and EU governments would want to give guarantees that the joint borrowing would be repaid.

“It is a single of the designs under thought, but nothing has been made a decision but,” one senior EU official mentioned.

The EU expects that the United States would sign up for the work and give about 5 billion euros, which would leave the EU to raise some 10 billion euros by the joint borrowing, officers said.

The concept is to be mentioned at the Group of 7 finance ministers conference in Bonn on Could 18-20, officials explained.

But a German governing administration formal expressed scepticism toward any these proposal.

“We are looking for a G7 answer, but with no a joint borrowing in the EU. Current talks have been promising,” the formal reported.

Supplemental reporting by Christain Kraemer in Berlin Reporting by Jan Strupczewski
Editing by Raissa Kasolowsky

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