Biden wants to write off almost $5 billion of Ukraine's debt

President of the United States Joe Biden has submitted to Congress a statement of intent to cancel half of Ukraine's economic aid debt. The amount of cancellation is approximately $4.65 billion.

This was stated by State Department spokesman Matthew Miller, RBC-Ukraine reports, citing his briefing.

Congress supported the Ukraine Security Supplemental Appropriations Act of about $61 billion in April 2024. The terms of the document state that economic assistance - about $10 billion - is provided to Ukraine not on a grant basis, but as a conditional repayable loan.

However, the document submitted by Biden gives him the authority to forgive 50% of this loan. At the same time, the document states that the other 50% will be forgiven by the next US president after January 1, 2026.

“We have taken the step outlined in the law to cancel these loans for the economic assistance provided to Ukraine, and now Congress can take it,” Miller said.

He noted that after the White House notified Congress of this decision, lawmakers could pass a resolution to object to it. But, in his opinion, this will not happen.

“I would be surprised if Congress would take such a step, given the overwhelming bipartisan support in Congress for the aid. But we will follow the law,” the spokesman explained.

Author - Dmitriy Levchenko, 21/11/2024