Published by Global Banking & Finance Review®
Posted on December 8, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe ECB has refused to back a $163 billion loan to Ukraine, complicating the EU's plan to use frozen Russian assets. The proposal reportedly violates the ECB's mandate.
Dec 2 (Reuters) - The European Central Bank has refused to backstop a 140 billion euros ($162.53 billion) payment to Ukraine, undermining an EU plan to raise a “reparations loan” backed by frozen Russian assets, the Financial Times reported on Tuesday.
The ECB concluded the European Commission proposal violated its mandate, the newspaper said, citing multiple officials, adding to Brussels’ difficulties in raising the loan against Russian central bank assets immobilised at Euroclear, the Belgian securities depository.
Reuters could not immediately verify the report.
($1 = 0.8614 euros)
(Reporting by Mrinmay Dey in Bengaluru; Editing by Muralikumar Anantharaman)
The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy in the Euro area, aiming to maintain price stability and support economic growth.
A reparations loan is a financial arrangement intended to provide funds for reparations, often linked to compensation for damages or losses, typically in the context of international conflicts.
Monetary policy involves the management of a country's money supply and interest rates by its central bank to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Debt sustainability refers to a country's ability to manage its debt levels without requiring debt relief or accumulating excessive debt, ensuring that it can meet its financial obligations over time.
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