Ukraine's parliament to vote on ratification of $104 billion EU loan

Ukraine's parliament is expected to vote on the ratification of a 90-billion-euro ($104 billion) loan deal with the European Union on Thursday that would greatly ease its strained finances, lawmakers said.

President Volodymyr Zelenskiy has submitted to the house a set of documents for ratification including the memorandum of understanding on a macro-financial assistance programme that was signed last week.

The loan, critical for supporting Ukraine's finances, had been blocked until last month, when Hungary's new government lifted its veto.

Under the deal, 8.35 billion euros in funds for general budget support this year are to be distributed in three instalments tied to Ukraine adopting tax changes that had already been demanded by the International Monetary Fund, although parliament has balked at some of the legislation.

One piece of legislation on raising taxes on parcels sent from abroad failed to pass parliament earlier this week.

The legislation also includes the introduction of a tax on income earned through digital platforms.

The IMF's monitoring mission arrived in Kyiv on Wednesday for the first review of its $8.1 billion lending programme to Ukraine, approved in February.

Ukraine, now in its fifth year of fighting against a full-scale Russian invasion, channels the bulk of its domestic revenue to defence and relies on foreign financial aid to cover its social and humanitarian spending.

Parliament is also expected to vote on changes to the budget that would increase military spending thanks to the EU loan.

($1 = 0.8620 euros)

-Jekaterīna Golubkova, Anna Pruchnicka/Reuters