Budapest has previously criticized the multibillion-euro scheme and opted out of co-funding it
Budapest has imposed a veto on a €90 billion ($106 billion) EU loan for Ukraine agreed in December, Financial Times has reported. Hungary, along with several other EU members, had previously opted out of the scheme, which was expected to be covered through joint EU borrowing.
The Hungarian representative raised an objection, the outlet said on Friday, citing four people familiar with the matter. The report did not provide any details. Brussels requires the unanimity of its 27 EU members to move forward with the plan.
According to the European Commission, the proposed loan package for Ukraine allocates €60 billion for military assistance and €30 billion for general budget support.
Under the plan, the loan could only be repaid if Ukraine receives war reparations from Russia. The scheme was approved after the bloc’s members failed to reach a consensus on a ‘reparations loan’ of around €140 billion that was to be secured through the use of frozen Russian assets as collateral. The proposal faced staunch opposition from Belgium, where most of the frozen assets are held, as well as from several other EU nations that cited major legal hurdles and risks.
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