Ukraine will receive a loan worth up to €500 million from the European Union (EU) to help stabilize its economy.

Approved by members of the European Parliament (MEPs), the funding is intended to assist the nation in recovering from the impact of the financial crisis, something which may increase job creation.

The loan will be available for 30 months from now, after 605 MEPs to 37 voted in favor of it to help the country fund its deficit and meet its budgetary requirements.

Any cash borrowed by the Ukrainian government during this period will have to be repaid within 15 years and it will be used to supplement support from the International Monetary Fund.

The EU previously approved €110 million in macro-financial assistance to the Ukraine in 2002, in addition to similar aid to Serbia, Bosnia and Herzegovina, Armenia and Georgia in 2009.

With a population of around 45.7 million, Ukraine seceded from the Soviet Union in 1991 following its collapse and has an economy reliant on industry and agriculture.

Posted by Fiona Summers