According to Bloomberg, official Brussels is considering a scenario of tightening the conditions for the payment of a loan to Ukraine in the amount of 90 billion euros. It is important to understand that the provision of part of the funds will depend on the introduction of unpopular changes in corporate taxation.
Points of attention
- The EU assistance affected by the new conditionality is only a small part of a larger defense support package, highlighting the importance of the proposed reforms for Ukraine's economic stability.
- The ongoing discussions highlight the complex financial considerations and negotiations involved in providing financial aid to countries like Ukraine.
Discussions continue in the EU regarding a loan for Ukraine
As journalists managed to find out, the bloc is still actively discussing changes to the preferential taxation regime currently in effect for some Ukrainian companies.
Primarily designed for sole proprietors and small businesses, it allows companies to pay a minimum rate of 5% of revenue.
The Ministry of Finance and major donors of Ukraine opposed this idea.
According to the latter, this scheme will be a blow to the military budget, increase competition, and help support a large shadow economy.
Anonymous sources claim that the proposal would require Volodymyr Zelenskyy's team to introduce a 20 percent value-added tax for those companies that currently operate under the preferential system and whose annual revenue exceeds 4 million hryvnias.
What is important to understand is that the EU assistance that could potentially be affected by the new conditionality represents only a small part of the entire two-year package, which consists of about 60 billion euros in defense support.
As mentioned earlier, the remainder is divided between macro-financial assistance and the so-called Ukraine Facility package, which provides funds for general budget expenditures.
