What was that about the West pushing Ukraine into a debt trap? USA help is still free of charge to date and here is the EU loans.
“European Pravda” has found out on what conditions the EU will transfer Kyiv €18 billion...
www.eurointegration.com.ua
35 years without interest
The government makes clear that €18 billion are not for military expenses. "We have agreed with the EU, and we adhere to it, that their funds go to humanitarian needs, not on financing security and aid," Stefanishyna said. However, whatever the intended purpose, Ukraine receives this debt aid.
Some EU states, primarily
Germany, wanted to allocate money to Ukraine as a grant, as the USA did last year. This idea did not find unanimous support. As a compromise, they agreed on extremely favourable conditions which guarantee that the loan of €18 billion will not put Ukraine in a "money pit."
First,
the loan repayment period is due within 35 years. The EU has never lent money to Ukraine for such a long time. Last year's macro-financial assistance was for 25 years.
It was usually about a 15-year term before the war.
Secondly,
Ukraine will have to repay its debt not before 2033, according to EU Council. This is an unprecedentedly long grace period.
Moreover, it is not ruled out that the debt could be written off or the seized funds of the Russian Federation will repay it.
Thirdly,
Ukraine will not pay interest and other loan services. The EU made a political decision to avoid the side effects of the "macrofin" for Kyiv. After all, even with preferential interest, debt service of €18 billion is expensive. For this, Brussels came up with the mechanism of "interest subsidy": the interest will be paid by EU countries instead of Ukraine.