EU approves €90b loan for Ukraine

The European Council on Friday approved a 90-billion-euro loan package to support Ukraine's military and economic needs over the next two years, reported Xinhua.

According to a European Council statement, the loan will be financed through European Union borrowing on the capital markets and backed by the EU budget "headroom," the unused margin in the budget that can be mobilized as a guarantee to support EU borrowing.

Because EU-level joint borrowing often hinges on unanimity, the statement adds that any EU budget guarantee for the loan "will not have an impact on the financial obligations" of the Czech Republic, Hungary and Slovakia, an opt-out meant to secure their nod and keep the deal intact.

The statement noted that part of the Ukraine-related text was "firmly supported" by 25 leaders. However, Russia's TASS news agency reported that Hungary and Slovakia did not sign the joint statement.

Ukrainian President Volodymyr Zelensky on Friday welcomed the EU's decision to provide the loan.

"This is significant support that truly strengthens our resilience," Zelensky wrote on X, adding that the deal provides Ukraine with a financial security guarantee for the coming years.