The funds promised to Ukraine by the EU have been delayed due to concerns over the bloc’s own economic troubles and infighting in Brussels, Bloomberg reported on Friday, citing people familiar with the discussions.
Back in March, the European Commission proposed a €9 billion ($9 billion) loan to Ukraine that would be backed by the guarantees of EU members’ governments. However, so far the bloc has managed to agree only on a first tranche worth €1 billion, which was unveiled on Tuesday.
According to Bloomberg, the hang up is because Germany tried to convince the EU to provide non-refundable grants through the International Monetary Fund rather than loans to Kiev.
A German official was quoted as saying that Berlin does not want to bear the brunt of guaranteeing Ukrainian loans and has asked other members to chip in more.
Separately, a €1.5 billion loan by the European Investment Bank was said to have been blocked within the EU because more guarantees are needed to secure the sum.