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Monday, 6 May
economy

Grant was replaced by a loan: how Ukraine will repay its debts to the U.S.

As part of a large aid package approved by the U.S. Congress, Ukraine will receive direct budgetary assistance in the amount of $7.85 billion, which is issued in the form of a loan.

This is stated in the material of Apostrophe.

As a reminder, the total amount of the package allocated to our country by the United States is $60.84 billion, and the major part of this amount is military aid.

Direct economic assistance will amount to $9.5 billion, of which $7.85 billion is direct budget support.

In addition, $1.57 billion is ''other types of economic assistance''. According to Ilya Neskhodovsky, Head of Analytical Department at ANTS, these funds will be mainly used to restore energy facilities that were damaged or destroyed as a result of Russian missile attacks.

The financial assistance will be provided to us not as a grant but as a loan. According to Ilya Neskhodovsky, this satisfies the claims of the Republicans, who were outraged that Europeans were giving Ukraine loans, while the United States was providing free aid.

However, after November 2024, with the consent of Congress, the US President may cancel half of the debt on this loan, and after January 1, 2026, the entire debt on it.

Dmytro Boyarchuk, Executive Director of the CASE Ukraine, believes that no one in the United States really hopes to get this loan back.

"They will not be able to get this money back from us for a long time, so it looks like a political maneuver," the expert told the publication. - "And I don't think it was expected that we would give anything back under any circumstances. It seems that from the very beginning it was assumed that this money would be forgiven."

Ilya Neskhodovsky also believes that we will not be required to repay the loan: "I think it will be canceled with a 90% probability. Although American politics is somewhat unpredictable."

Earlier, we wrote that the U.S. Senate approved the allocation of military aid to Ukraine, Israel, and other U.S. allies.