RT International The European Commission has given members a choice between the economic and legal consequences of funding Kiev, the newspaper has reported
EU member states will face ballooning deficits and debt unless they agree to use frozen Russian assets as collateral to fund Ukraine, the European Commission has warned in a document seen by the Financial Times.
The paper was circulated to EU capitals following last month’s failure to reach a consensus on a ‘reparations loan’ of around €140 billion ($160 billion), the FT reported on Friday.
Without tapping the frozen Russian central bank reserves, the EU would need to either authorize joint borrowing or issue direct grants – both of which would “directly affect” national budgets and increase public debt, the commission warned. It remains unclear whether the option of not bankrolling Kiev was even considered.
The potential cost to EU economies is substantial, as servicing a collective loan of that size could result in up to €5.6 billion in annual interest payments. The commission cautioned that borrowing on this scale could also raise general EU borrowing costs and undermine other financial instruments.
…
Read Full Article Here…(rt.com)
Home | Caravan to Midnight (zutalk.com)
Live Stream + Chat (zutalk.com)
Be First to Comment