A group of European Union member states pledged to contribute over €400 million to the European Investment Bank’s fund to support the recovery and reconstruction of Ukraine, with first disbursements beginning in autumn.
(Bloomberg) — A group of European Union member states pledged to contribute over €400 million to the European Investment Bank’s fund to support the recovery and reconstruction of Ukraine, with first disbursements beginning in autumn.
The EIB and the finance ministers of 16 countries signed a letter of intent to contribute to the “EU for Ukraine” fund on Thursday. France and Italy pledged to provide €100 million each. The fund will serve as “a temporary bridge solution until longer-term EU measures become available,” the EIB said in a statement.
The fund’s aim is to support projects in both the public and private sector, with a particular focus on infrastructure such as schools, hospitals, transport and water facilities, as well as digital capabilities. The EIB also aims to improve access to financing for Ukrainian entrepreneurs by offering subsidies to the country’s banks.
The EIB has previously pledged to contribute €100 million of its own resources to the trust fund and said it will provide technical assistance to identify reconstruction projects in Ukraine, as well as support the EU accession process of both Ukraine and Moldova.
Last year, the EIB already disbursed €1.7 billion to Ukraine to rebuild schools, hospitals, and social housing ravaged by Russian bombing. “We cannot wait until after the war to help Ukraine reconstruct its infrastructure and relaunch its economy. This has to happen now,” EIB Vice-President Teresa Czerwinska said in a statement.
Countries will now seek approval in their respective parliaments. Other member states, non-EU countries and private donors will also be able to join the fund, which the EIB expects to grow with future commitments.
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