PM: Ukraine has enough resources for macroeconomic stability

Ukraine currently has enough resources to ensure its macroeconomic and macro-financial stability.

"Macroeconomic stability is the foundation for economic growth. At present, we have enough resources to ensure macroeconomic and macro-financial stability. There is over UAH 27 billion on the Treasury Single Account, more than UAH 30 billion on foreign currency accounts. The NBU reserves reach almost $30 billion," Prime Minister of Ukraine Denis Shmyhal posted on Facebook, summing up the economic results of the week.

He noted that Ukraine had already agreed with the EU on the next macro-financial program worth EUR 1.2 billion. In addition, the Head of Government called on international partners to support not only the long-term modernization of Ukraine but also to help mitigate the blow to the economy through instruments of guarantees or concessional financing.

Shmyhal also mentioned the energy transformation projects: synchronization with the European energy network ENTSO-E and the formation of transparent energy markets; transformation of coal regions; increase in domestic gas production; large-scale program of thermal modernization; creation of a gas hub in Ukraine; development of nuclear generation, hydrogen technologies, and implementation of the provisions of the European Green Deal. According to the Prime Minister, these projects require tens of billions of dollars of investment, and therefore the state will actively involve business and international partners for such a transformation to be successful.

The Head of Government also touched upon the results of the EU-Ukraine Association Agreement implementation. Thus, the dynamics of the agreement implementation have increased by 19% over the past two years and now stand at 63%. "Last year alone, the Government approved more than 60 documents that will allow us to integrate into EU markets as actively as possible. In the next two years, we will sign five more agreements with our European partners and plan to revise trade annexes to the Association Agreement," Shmyhal added.

The Prime Minister stressed that from March 1, the Government will adjust pensions according to the cost-of-living index for all retirees by 14%. The average increase will be UAH 500. At the same time, the pensions of military retirees and Chornobyl disaster liquidators with disabilities will increase by UAH 700 up to UAH 1,500.

As reported, the National Bank has sold $1.5 billion since the beginning of 2022 to reduce exchange-rate movements. At the same time, the NBU believes that today the foreign exchange market is much more resistant to shocks as the hryvnia devalued by 14% against the current 5.1% at the beginning of coronavirus-related quarantine in March 2020.

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