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EU Commission working on proposal for joint borrowing to help finance Ukraine

European Union flags fly exterior the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves Herman

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BRUSSELS, May perhaps 10 (Reuters) – The European Commission is considering new joint credit card debt issuance by the 27-nation bloc, two EU officials explained, to go over Ukraine’s liquidity gap of 15 billion euros ($15.9 billion) above the future a few months, though Germany is sceptical to the thought.

A Fee proposal is to be published on May 18, a person EU formal mentioned. The new joint EU borrowing, if agreed, could be centered on the EU’s Positive plan for funding unemployment rewards in the course of the COVID-19 pandemic, officers explained.

This would mean that Ukraine would get quite inexpensive loans from the bloc, and EU governments would need to have to present assures that the joint borrowing would be repaid.

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“It is 1 of the styles less than consideration, but nothing has been resolved still,” one senior EU official mentioned.

The EU expects that the United States would be part of the effort and hard work and supply all around 5 billion euros, which would go away the EU to raise some 10 billion euros as a result of the joint borrowing, officials stated.

The idea is to be discussed at the Group of Seven finance ministers meeting in Bonn on Could 18-20, officers stated.

But a German govt formal expressed scepticism to any these types of proposal.

“We are seeking for a G7 reply, but without a joint borrowing in the EU. Latest talks have been promising,” the formal explained.

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Added reporting by Christain Kraemer in Berlin Reporting by Jan Strupczewski
Enhancing by Raissa Kasolowsky

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