Dialogos

ECOFIN: Agreement on €90 Billion Loan to Ukraine with Disbursement from Q2

Published February 17, 2026, 17:02
ECOFIN: Agreement on €90 Billion Loan to Ukraine with Disbursement from Q2

The Economic and Financial Affairs Council (ECOFIN), under the Cypriot presidency, has agreed on a package of proposals to grant a €90 billion loan to Ukraine, covering its funding needs for 2026 and 2027. The disbursement of funds is expected to begin in the second quarter of the current year. The agreement was reached in cooperation with the European Parliament and the European Commission. Cypriot Finance Minister Makis Kerounos stated that the Cypriot Presidency worked to ensure the immediate funding of Ukraine, which has been affected by Russian aggression. Ministers focused on the economic impacts of the war and welcomed the agreement to support Ukraine. In addition, the Council approved amendments to Lithuania's Recovery and Resilience Plan, aiming to accelerate its implementation. All Recovery and Resilience Plans of the member states have already been approved, with disbursement of approximately €394 billion, representing 68% of the total committed amount. As part of strengthening defense spending, the national escape clause was activated for Austria, allowing for a gradual increase in defense spending while ensuring fiscal sustainability. Eight executive decisions were also adopted under the European Security Action (SAFE), paving the way for the granting of affordable long-term loans from the Commission. Finally, the Union list of non-cooperative tax jurisdictions was updated.