On Tuesday December 10, Treasury Secretary Janet Yellen announced the disbursement of a $20 billion loan to Ukraine. This represents the final chapter in the long-negotiated G7 $50 billion Extraordinary Revenue Acceleration (ERA) loan agreed at the G7 Summit in Puglia, in June.
Biden had already confirmed America’s intention to provide this loan in October, so the payment this week represents the dotting of the “I” of that process. The G7 loans are now made up of $20 billion each from the U.S. and the EU, with the remaining $10 billion met by the UK, Canada, and Japan.
To be clear, this U.S. loan represents no additional funding for Ukraine beyond what had already been agreed by the G7; it doesn’t raise the bar on the $50 billion pledged so far. The European Union had already made provision to fill the gap, had the U.S. not provided this lending. In that regard, it is encouraging that the U.S. is doing the right thing by following through on its earlier commitment. ….more
