Belgium's €140 Billion Question: To Loan or Not to Loan?

Belgium is in a tough spot. A massive €140 billion loan for Ukraine is on the table. The catch? It uses frozen Russian assets as backup. These assets are stuck in Euroclear, a big financial hub in Brussels. The idea is to lend this money to Ukraine. But Belgium isn't sure about it.

The Plan

Use Russian cash held in Euroclear. This cash comes from bonds that have matured. The loan would be repaid using future Russian reparations. Many EU countries and others would guarantee it. The European Central Bank says it should follow international law and keep things stable.

Belgium's Hesitation

But Belgium is hesitant. They're worried about the legal and economic risks. The loan is a big deal. It's a way to help Ukraine without directly seizing Russian assets. But it's a complex issue. Belgium needs to think carefully before making a move.

The Big Step

The loan is a big step. It shows how allies are trying to help Ukraine. But it's not straightforward. There are legal and economic concerns. Belgium's hesitation shows the challenges ahead. A new approach is needed to tackle this issue.