When countries send monetary aid to other countries, where does it go/what is it used for? Is it cash? Debt?

245 views

When countries send monetary aid to other countries, where does it go/what is it used for? Is it cash? Debt?

In: 2

2 Answers

Anonymous 0 Comments

Every situation is unique so there’s no single answer.

The recent US aid package to Ukraine is:

>Among other things, the bill provides appropriations for defense equipment, migration and refugee assistance, regulatory and technical support regarding nuclear power issues, emergency food assistance, economic assistance, and seizures of property related to the invasion.

This is largely *not* a direct transfer of money, as nations that need significant aid packages typically aren’t all that trustworthy about these things and much of that money will be lost to corruption. It’s harder (but not impossible) for corrupt officials to embezzle a shipment of medical supplies or blankets.

It can be a true gift, or a lend-lease style agreement where some percentage is expected to be repaid after the crisis is over.

You are viewing 1 out of 2 answers, click here to view all answers.