Ukraine's parliament to vote on ratification of EU loan

Loan, critical for supporting Ukraine's ⁠finances, was blocked until last month, when Hungary government lifted veto

Ukraine's parliament is expected to vote on Thursday to ratify a 90-billion-euro ($104 billion) loan deal with the European Union, which 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. However, parliament has baulked at ​some of the legislation.

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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.