EU Approves €90Bn Ukraine Loan Amid Zelenskyys Funding Warning, ECB Holds Rates

The European Union has agreed a €90-billion loan to support Ukraine, providing a crucial financial lifeline. This agreement follows extensive talks in Brussels, though leaders failed to reach a consensus on utilising frozen Russian assets, with Belgium raising legal concerns. Ukraine estimates it requires an additional $135 billion (equivalent to almost $160 billion) over the next two years, with a potential cash crunch starting in April.

Concurrently, Ukrainian President Volodymyr Zelenskyy issued a stark warning, indicating that the nations drone production could be significantly reduced if pledged funding does not arrive by spring. He highlighted the risk of losing a competitive edge against Russia in drone numbers if delays persist.

In other financial news, the European Central Bank (ECB) opted to maintain its interest rates at 2%. This decision reflects a more optimistic assessment of the Eurozone economy, despite ongoing global trade pressures.

The ECB also raised several of its growth and inflation projections for the bloc. This contrasts with the Bank of England, which cut its interest rates for the fourth time this year, reducing them from 4% to 3.75%, following a significant drop in inflation data and an economic stagnation forecast.