A significant number of European Union member states support early payouts from a 90 billion euro loan package for Ukraine to help cover its urgent defense budget deficit, according to Irish Minister for Defence Helen McEntee.
McEntee made the statement following an informal meeting of EU defense ministers held in Ireland, where Ukraine's defense minister joined via video link to present the country's immediate financial requirements.
McEntee said that the presentation from the Ukrainian defense minister made it clear that a financial deficit and need exist, and she believed a substantial number of EU member states supported the request. She did not specify the exact number of nations involved in backing the move.
The proposal involves transferring a portion of the EU funding currently scheduled for 2027 into the 2026 disbursement schedule. The overall 90 billion euro loan package is structured to cover payments across 2026 and 2027.
Because the gathering in Ireland was an informal ministerial meeting, no official decision was adopted. McEntee pointed out that formal approval falls under the competence of EU member states and European Union institutions.
McEntee added that while taking a binding decision was beyond the scope of the day's informal meeting, she believed ministers should advocate as far as possible for the funding to be made available earlier.
EU loan package and financial deficit
The High Representative of the EU for Foreign Affairs and Security Policy, Kaja Kallas, also emphasized that the issue of advancing loan disbursements rests primarily with individual member states. Kallas is the chief diplomat responsible for coordinating the bloc's foreign and security policies.
Kallas stated that asking for advanced funding means requesting member states to bring forward contributions they had planned to make in the future because Ukraine requires the resources now. She noted that agreed mechanisms and decisions for the 90 billion euro loan are already active and that Ukraine has received a portion of the funds.
Brussels originally calculated the 90 billion euro loan to cover approximately two-thirds of Ukraine's total budget and financial requirements for 2026 and 2027. The European Union has called on international partners to finance the remaining third of Kyiv's needs.
Ukraine had previously expressed its intention to ask partners to bring forward a portion of the roughly 45 billion euros designated for 2027 into the current year to meet mounting military expenditure. However, Ukraine has not yet submitted a formal request regarding the adjustment to the European Commission.
Risks and future disbursements
On August 24, Ukrainian President Volodymyr Zelenskyy stated that Ukraine faces a budget deficit of 27 billion dollars this year. Zelenskyy identified two potential avenues to address the shortfall: utilizing frozen Russian assets or securing a portion of the 2027 EU loan payments early in 2026.
The Prime Minister of Ukraine has warned that the country could face significant financial risk if it does not fulfill its obligations.
Concerns remain within the EU regarding the long-term impact of shifting disbursements forward. An EU official previously told Radio Free Europe/Radio Liberty that frontloading the loan payments might only relocate the deficit to the following year.
Under the original plan, 45 billion euros is scheduled for disbursement to Ukraine in 2027. If a portion of that sum is used ahead of schedule, a corresponding funding shortfall will emerge in 2027 instead.
