The European Commission, or the executive body of the European Union (EU), disbursed on Wednesday a loan of 600 million euros (654 million U.S. dollars) to Ukraine.

According to a press release issued by the Commission, this loan corresponds to the first instalment under the new EU Macro-Financial Assistance (MFA) program for Ukraine, which amounts to a total of 1.8 billion euros.

Through this program, the EU aims to cover the urgent financing needs faced by Ukraine, while supporting the country's economic stabilization.

In addition, the EU's MFA package will assist the Ukrainian authorities in implementing important reforms in the areas of public finance management, governance and transparency, the energy sector, social safety nets, the business environment and the financial sector, said the press release.

Valdis Dombrovskis, the European Commission Vice-President responsible for the Euro and Social Dialogue, said the disbursement reflected the EU's "unfailing determination to stand by Ukraine in these challenging times."

Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs said the 600 million euros in macro-financial assistance added to the 1.6 billion euros already provided by the EU since the beginning of the crisis in Ukraine. In addition, the Commission envisages disbursing another 1.2 billion euros in the coming months subject to successful implementation of the economic and structural reforms agreed between the EU and Ukraine.

MFA operations are part of the EU's wider engagement with neighboring countries and are designed as an exceptional EU crisis response instrument available to EU neighboring countries that are experiencing severe balance of payments problems, said the press release.

In addition to MFA, the EU supports Ukraine through trade preferences, humanitarian assistance development aid and budget support for reforms. Endit

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