Legal provisions of COM(2022)450 - Exceptional macro-financial assistance to Ukraine - Main contents
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| dossier | COM(2022)450 - Exceptional macro-financial assistance to Ukraine. |
|---|---|
| document | COM(2022)450  |
| date | July 12, 2022 |
Article 1
1. The Union shall make available to Ukraine macro-financial assistance of a maximum amount of EUR 1 billion (the ‘Union’s macro-financial assistance’) with a view to supporting Ukraine’s macro-financial stability. The Union’s macro-financial assistance shall be provided to Ukraine in the form of a loan.
2. In order to finance the Union’s macro-financial assistance, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to Ukraine. The loan shall have a maximum average maturity of 25 years.
3. The financial envelope referred to in Article 6(2), point (a), first indent, of Regulation (EU) 2021/947 shall be used to cover the costs of interest payments related to the macro-financial assistance during the period of the multiannual financial framework 2021–2027, as an interest rate subsidy referred to in Article 5(2) of this Decision.
4. The release of the Union’s macro-financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the Commission and Ukraine in the MoU referred to in Article 3(1).
5. The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union’s macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.
6. The Union’s macro-financial assistance shall be made available for a period of 12 months, starting on the first day after the entry into force of the MoU referred to in Article 3(1).
7. If the financing needs of Ukraine decrease fundamentally during the period of the disbursement of the Union’s macro-financial assistance compared to the initial projections, the Commission shall reduce the amount of the assistance, suspend it or cancel it.
Article 2
1. A precondition for granting the Union’s macro-financial assistance shall be that Ukraine respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guarantee respect for human rights.
2. The Commission and the European External Action Service shall monitor the fulfilment of the precondition set out in paragraph 1 throughout the life-cycle of the Union’s macro-financial assistance, in particular before disbursements are made, also taking into account the circumstances in Ukraine and the consequences of the application there of martial law.
3. Paragraphs 1 and 2 of this Article shall apply in accordance with Council Decision 2010/427/EU (9).
Article 3
1. The Commission shall agree with Ukraine on clearly defined reporting requirements to which the Union’s macro-financial assistance is to be linked. The reporting requirements shall be set out in a Memorandum of Understanding (MoU) and adopted in accordance with the examination procedure referred to in Article 8(2).
2. The reporting requirements shall ensure, in particular, that the Union’s macro-financial assistance is used in an efficient, transparent and accountable manner. The Commission shall regularly monitor the implementation of those reporting requirements.
3. The detailed financial terms of the Union’s macro-financial assistance shall be laid down in a loan agreement to be concluded between the Commission and Ukraine.
4. The Commission shall verify, at regular intervals, the implementation of the Union’s macro-financial assistance, and in particular of the reporting requirements set out in the MoU. The Commission shall inform the European Parliament and the Council about the results of that verification.
Article 4
1. Subject to the requirements referred to in paragraph 2, the Union’s macro-financial assistance shall be made available by the Commission in a single instalment, in the form of a loan. The Commission shall decide on the timeframe for the disbursement of the instalment. The instalment may be disbursed in one or more tranches.
2. The Commission shall decide on the release of the instalment, subject to its assessment of the following requirements:
| (a) | respect for the precondition set out in Article 2(1); |
| (b) | entry into force of the MoU, which shall provide for the setting-up of a reporting system applicable during the entire period of the loan. |
3. Where the requirements set out in paragraph 2 are not met, the Commission shall temporarily suspend or cancel the disbursement of the Union’s macro-financial assistance, or take appropriate measures pursuant to the loan agreement. In such cases, it shall inform the European Parliament and the Council of the reasons for the suspension or cancellation.
4. The Union’s macro-financial assistance shall in principle be disbursed to the National Bank of Ukraine. Subject to the provisions to be agreed in the MoU, including a confirmation of residual budgetary financing needs, the Union funds may be disbursed to the Ukrainian Ministry of Finance as the final beneficiary.
Article 5
1. The borrowing and lending operations shall be carried out in accordance with Article 220 of the Financial Regulation.
2. By derogation from Article 220(5), point (e), of the Financial Regulation, the Union may bear interests, by granting an interest rate subsidy, and administrative costs related to the borrowing and lending, with the exception of costs related to early repayment of the loan, in respect of the loan under this Decision.
3. Ukraine may request the interest rate subsidy and coverage of the administrative costs by the Union by the end of March of each year.
4. Where necessary, by derogation from Article 220(2) of the Financial Regulation, the Commission may roll over the associated borrowings contracted on behalf of the Union.
5. The Commission shall inform the European Parliament and the Council of developments in the operations referred to in paragraphs 2 and 3.
Article 6
During the implementation of the Union’s macro-financial assistance, the Commission shall re-assess, by means of an operational assessment, the soundness of Ukraine’s financial arrangements, the administrative procedures, and the internal and external control mechanisms which are relevant to the assistance.
Article 7
1. For the Union’s macro-financial assistance provided in the form of a loan under this Decision, the provisioning rate of 70 % shall apply instead of the general rule set out in Article 31(5), third subparagraph, of Regulation (EU) 2021/947.
2. Instead of the general rule set out in Article 31(6) of Regulation (EU) 2021/947, the financial liabilities from the Union’s macro-financial assistance provided in the form of a loan under this Decision shall be covered separately from other financial liabilities under the External Action Guarantee and the provisioning set aside in the common provisioning fund in respect of the Union’s macro-financial assistance provided in the form of a loan under this Decision shall be used solely for the financial liabilities derived therefrom.
3. By way of derogation from Article 213 of the Financial Regulation, the effective provisioning rate shall not apply to the provisioning set aside in the common provisioning fund in respect of the Union’s macro-financial assistance provided in the form of a loan under this Decision.
Article 8
1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 9
1. By 30 June of each year, the Commission shall submit to the European Parliament and to the Council, as part of its annual report, an assessment of the implementation of this Decision in the preceding year, including an evaluation of that implementation. That report shall:
| (a) | examine the progress made in implementing the Union’s macro-financial assistance; |
| (b) | assess the economic situation and prospects of Ukraine, as well as the implementation of the requirements referred to in Article 3(1); |
| (c) | indicate the connection between the requirements and conditions set out in the MoU, Ukraine’s ongoing macro-financial situation, and the Commission’s decision to release the instalment of the Union’s macro-financial assistance. |
2. Not later than two years after the end of the availability period, the Commission shall submit to the European Parliament and to the Council an ex-post evaluation report, assessing the results and efficiency of the completed Union’s macro-financial assistance and the extent to which it has contributed to the aims of the assistance.
Article 10
This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.