The European Union’s European Commission on Wednesday proposed a massive aid package for Ukraine worth 18 billion euros ($18.06 billion) meant to help cover the country’s budget deficit for 2023.
The €18 billion would be disbursed through loans throughout 2023 and would average about €1.5 billion each month. The US is expected to put up a similar amount as Ukraine has passed a budget with a $38 billion deficit, and the IMF estimates the Ukrainian government will need between $3 billion and $4 billion each month to get by.
But the EU’s proposed aid is facing resistance from Hungary. “I have made it clear that Hungary is ready to support Ukraine, but we do not wish to contribute to any new loan to be taken up by the EU,” Hungarian Finance Minister Mihaly Varga said on Tuesday, according to Reuters.
To send the money to Ukraine, the EU’s 27 members would need to jointly borrow the funds, and Kyiv would have 35 years to pay it back. Gergely Gulyas, chief of staff for Hungarian Prime Minister Viktor Orban, said Hungary hasn’t agreed on the plan to jointly borrow the money.
European Commissioner Valdis Dombrovskis said that he was working to alleviate Hungary’s concerns. “We will be discussing … what concerns Hungary has in relation to this proposal, and I hope we will come up with a solution,” he said.