Ukraine war

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03.07.2024 14:14

Both the USA and the International Monetary Fund recently announced billions more in aid for Ukraine. The IMF money is reportedly part of an ongoing loan program amounting to the equivalent of a good 15 billion euros. However, there is no agreement on guaranteed multi-year military aid from the NATO states.

In the run-up to a summit meeting in Washington, the 32 allies were only able to agree to provide support amounting to at least 40 billion euros within the next year, as the German Press Agency learned from several delegations. 

Gross domestic product as a criterion for aid
A concrete agreement on the question of who will contribute how much was also reportedly not reached. The NATO countries have only vaguely stated that gross domestic product should play a role.

NATO Secretary General Jens Stoltenberg pressed for an agreement, but the NATO states do not want a guarantee for multi-year military aid for Ukraine. (Bild: ASSOCIATED PRESS)
NATO Secretary General Jens Stoltenberg pressed for an agreement, but the NATO states do not want a guarantee for multi-year military aid for Ukraine.

Outgoing NATO Secretary General Jens Stoltenberg had originally called on the allies to guarantee Ukraine longer-term military aid worth at least 40 billion euros annually. It was also a matter of showing Russian President Vladimir Putin that he would not win his war of aggression against Ukraine, he explained at a meeting with the foreign ministers of the 32 NATO countries in Prague at the end of May.

The amount of 40 billion euros would roughly correspond to the previous annual support of the allies since the start of the Russian invasion. On the question of how a fair burden-sharing could be ensured, Stoltenberg said at the time that one option would be to calculate the contribution of the individual member states on the basis of their gross domestic product.

Repayment freeze expires, Ukraine faces default
A few days ago, the British business magazine "The Economist" reported on a possible default by Ukraine in August. Several private investment companies then expect the resumption of debt repayments, which were suspended at the beginning of the war. Kiev does not see itself in a position to do so and expects a debt haircut or at least a debt restructuring. According to calculations by The Economist, the country's debt burden will rise to 94% of gross domestic product by the end of the year. In the eurozone, a maximum value of 60 percent is considered stable.

This article has been automatically translated,
read the original article here.

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