The European Commission today proposed to provide €1 billion in loans to Ukraine as macro financial assistance, as a first tranche of a €9 billion aid package announced over a month ago.

Axar.az reports citing foreign media.

"This first part of the assistance announced in May will allow us to give an immediate answer to the urgent needs of Ukraine," Commission President Ursula von der Leyen said.

Ukraine needs $5 billion per month to keep its economy afloat, and it has warned a financial crisis is looming if aid isn't forthcoming. The Commission has prepared proposals to provide up to €8.8 billion in long-term loans to Ukraine as macro financial assistance, with interest payments subsidized by the EU's budget, according to three EU officials.

That figure would be backed by a guarantee covering 70 percent of the principal, with 9 percent from the EU budget and 61 percent from EU countries. The latter would be split according to their gross national income-based contributions to the EU's budget, with richer countries contributing more.