Belgium has refused to support the EU’s €140 billion loan package for Ukraine, which could jeopardise further financial support from the International Monetary Fund (IMF) and undermine international confidence in Ukraine’s economic stability – EU officials warn.
The loan would be covered by frozen Russian state assets in the EU, most of which are located in Belgium. The IMF is planning an $8 billion three-year loan to Kyiv, but its decision depends on the fate of the EU loan programme.
The EU is meanwhile trying to convince the Fund that Ukraine would not have to repay the loan unless Russia agreed to pay war reparations – something considered highly unlikely.
