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EU could provide Ukraine with 850 million euros by June

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(Globalpost/GlobalPost)

BRUSSELS (Reuters) - Ukraine could receive 850 million euros ($1.2 billion) in grants and loans from the European Union within the next three months, if its deal with the International Monetary Fund is finalized, a senior EU official said on Thursday.

Ukraine won a $27-billion international financing lifeline led by the IMF on Thursday, rushed through in the wake of Russia's annexation of Crimea.

As part of the West's financial aid to Ukraine, whose economy is on the brink of bankruptcy because of mismanagement and high energy costs, the EU will provide an overall 11 billion euros in loans and grants in the next several years.

The first disbursement - a 100 million euro loan - from the EU could take place as soon as April. In May, the EU would provide 250 million euros as its first grant from a facility meant to help countries strengthen state institutions, through budgetary support. In June, the EU could disburse half a billion euros. ($1 = 0.7278 Euros)

(Reporting by Justyna Pawlak; Editing by Angus MacSwan)

http://www.globalpost.com/dispatch/news/thomson-reuters/140327/eu-could-provide-ukraine-850-million-euros-june