SINGAPORE, Dec 19 (Reuters) - European Union leaders decided on Friday to borrow cash to fund Ukraine's defence against Russia rather than use frozen Russian assets, sidestepping divisions to secure a
Investors Respond to EU's 90 Billion Euro Ukraine Loan
SINGAPORE, Dec 19 (Reuters) - European Union leaders decided on Friday to borrow cash to fund Ukraine's defence against Russia rather than use frozen Russian assets, sidestepping divisions to secure a 90 billion euro loan.
German Bund futures dipped slightly in Asia hours and the euro eased marginally against a stronger dollar.
Here are what investors and market analysts are saying about the deal:
KYLE RODDA, SENIOR MARKET ANALYST, CAPITAL.COM, LONDON
"The big risk of using Russian assets to fund Ukraine's war effort is that it would cheapen European government paper and lead to higher rates on sovereign bonds. The flipside of that is that I would imagine this adds to the fiscal burden in Europe marginally."
"But I think that's a relatively small cost compared to what would be incurred if governments around the world in certain countries - China is the big one - decide that its not worth buying European debt because it could expose them to similar risk."
GEORGE BOUBOURAS, HEAD OF RESEARCH, K2 ASSET MANAGEMENT, MELBOURNE
"It's a good deal. More required and coming. (Recent U.S.-Europe energy deals) compliment the EU fund for Ukraine."
"While the geopolitical landscape has eased in H2 2025 there is also a risk that this recent detente is making markets complacent. This is a risk for 2026 that is not priced in."
(Reporting by Tom Westbrook; Editing by Amanda Cooper)
