According to a document seen by Reuters, the European Investment Bank, the lending arm of the European Union, is recommending a funding structure previously utilized to aid in the reconstruction of Ukraine with up to 100 billion euros ($104.3 billion) of investment.
The initial 20 billion euros in funding for the EU-Ukraine Gateway Trust Fund (E-U GTF) would come from EU member states and the EU budget in the form of grants, loans, and guarantees. According to the study, the guarantees, in particular, would have a multiplier effect, resulting in infrastructure projects worth about 100 billion euros—roughly half of Ukraine’s immediate needs.
On Monday, the first day of the international Ukraine Recovery Conference in Switzerland, which aims to offer resources to Ukraine and support a post-war recovery, the EIB’s proposal is scheduled to be unveiled. The EIB is recommending a fund to guarantee funds for small and medium-sized businesses that functions similarly to the COVID-19 pandemic fund. It was planned that 25 billion euros might mobilize up to 200 billion euros.