Ukraine's Parliament Approves €90 Billion EU Loan: Reforms Required for Funding.

EU Credit Agreement Ratified

According to Novyny.live: On May 28, Ukraine's Verkhovna Rada voted to ratify a credit agreement with the European Union, unlocking €90 billion in financing. This deal is part of the broader Ukraine Facility program and comes with strict conditions tied to EU-mandated reforms and memorandums.

Key Terms of the Agreement

The agreement extends the existing 5% military levy for an additional three years. It also introduces taxation on international parcels, with exemptions for the security and defense sectors. A reform of the simplified tax system for individual entrepreneurs (known as FOPs) is another critical component.

Ukraine's main commitments under the deal include:

• Implementing taxes on income from digital platforms;
• Extending the military levy;
• Overhauling the simplified tax system;
• Strengthening measures against business fragmentation;
• Introducing differentiated tax rates for individual entrepreneurs;
• Continuing VAT and customs system reforms;
• Adopting a new Customs Code aligned with EU standards.

By ratifying this agreement, the Verkhovna Rada has taken a significant step toward implementing a reform package designed to drive Ukraine's economic growth.

This funding is crucial for Ukraine amid its challenging economic environment, and it underscores the country's commitment to reforms that could improve the investment climate. Meeting these conditions will be essential for maintaining cooperation with the EU and securing additional resources for post-conflict recovery.