Monday, Sep 16th 2024
2PM 35* C ☀️ 5PM 34*C ☀️ 5-Day Forecast
The G7 has promised to raise a $50 billion (€45bn) loan for Ukraine, but the initiative requires an agreement between the 27 members of the European Union. The European Commission has presented member states with three options to fulfil a G7 plan that will see Western allies raising a $50 billion loan (€45 billion) to support Ukraine's army and economy in the battle against Russian forces. The plan, provisionally sealed at the G7 summit in June, will use the immobilised assets of Russia's Central Bank as collateral. The majority of them (€210 billion) are held in the 27-country bloc. While allies cannot confiscate the money, they can use the interests they generate to ensure the loan is gradually re-paid, without footing the bill themselves. But the unprecedented idea carries multiple financial risks, chief among them the possibility that these assets will be unfrozen before repayments are satisfied and allies will be held liable for default.
