Hungary blocks €90 billion EU loan for Ukraine
Economy
Hungary has blocked the European Union decision to provide Ukraine with a €90 billion loan aimed at stabilizing the country’s financial system during the ongoing conflict.
According to Financial Times, the Hungarian delegation opposed financing through joint EU debt issuance backed by the union’s budget. Since such decisions require unanimous approval from all 27 member states, Budapest’s position effectively halted the process.
The funding was considered crucial for Ukraine, which could face a budget deficit as early as the second quarter of the year. Kyiv is also negotiating with the International Monetary Fund for an €8 billion support program.
The blockade comes amid Hungary’s domestic political campaign. Prime Minister Viktor Orban has intensified criticism of financial assistance to Ukraine, with state media arguing that aid prolongs the conflict at taxpayers’ expense.
The funding was considered crucial for Ukraine, which could face a budget deficit as early as the second quarter of the year. Kyiv is also negotiating with the International Monetary Fund for an €8 billion support program.
The blockade comes amid Hungary’s domestic political campaign. Prime Minister Viktor Orban has intensified criticism of financial assistance to Ukraine, with state media arguing that aid prolongs the conflict at taxpayers’ expense.
Powered by Froala Editor