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EU plans another 50 billion euros of issuance for recovery fund in 2022
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(Reuters) – The European Union said on Friday it would issue another 50 billion euros ($52.7 billion) of long-term debt in the second half of 2022 to back its coronavirus recovery fund.
(Reuters) – The European Union said on Friday it would issue another 50 billion euros ($52.7 billion) of long-term debt in the second half of 2022 to back its coronavirus recovery fund.
That will be complemented by short-term bills issuance and add to the 50 billion euros it is targetting for the first half of the year, the European Commission said in a statement.
In addition to the funding for its up-800 billion euro recovery fund, which hands out loans and grants to member states, the EU said it may also issue up to 6.6 billion euros for loans under its SURE unemployment scheme, the first support programme it launched at the height of the COVID-19 pandemic in 2020.
It may also be called upon to issue another 9 billion euros backing loans for Ukraine under a new, exceptional macro-financial assistance programme, the Commission said.
(Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
A recovery fund is a financial mechanism established to provide financial support, typically in the form of loans and grants, to help countries recover from economic crises or disasters.
Long-term debt refers to loans or financial obligations that are due for repayment over a period longer than one year, often used for significant investments or projects.
The SURE unemployment scheme is a European Union initiative designed to provide financial assistance to member states to support workers affected by the economic impact of crises, such as the COVID-19 pandemic.
Loans are borrowed funds that must be repaid with interest, while grants are funds provided without the obligation to repay, typically used for specific projects or purposes.
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