EU's $106 billion wartime loan is a vital lifeline for Ukraine, more help needed

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Ukraine has secured a crucial European Union loan to support the country's wartime efforts. The €90 billion loan demonstrates strong support from Europe to help Ukraine keep its government and military running.

The funding comes as Ukraine's budget foresees a massive deficit of approximately 1.9 trillion hryvnias, or $43 billion, in 2026. This deficit represents around one fifth of the country's economic output.

The EU loan is expected to cover about two-thirds of Ukraine's funding needs in 2026 and 2027. Officials warn that without this assistance, Kyiv could have run out of resources to sustain basic state functions and its war effort as early as this spring.

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