Marchenko discusses Ukraine's 2023 state budget needs with Dutch, Japanese finance ministers

Ukraine's Minister of Finance Sergii Marchenko as part of his working visit to the United States met with his counterparts from the Netherlands and Japan to discuss the needs of the country's state budget for 2023.

That's according to the press service of Ukraine's Ministry of Finance, Ukrinform reports.

During the meeting with Deputy Prime Minister and Minister of Finance of the Netherlands Sigrid Kaag and her deputy Christiaan Rebergen, Marchenko thanked the Dutch government for supporting Ukraine's budget this year.

"I am sincerely grateful to the Government of the Netherlands for supporting Ukraine and providing $110 million in credit guarantees. These funds helped to ensure the priority social expenditures of the State Budget of Ukraine during martial law. Now we can provide only the most necessary expenses, but it should be taken into account that we provide the financing of military needs at the expense of our own revenues," Marchenko said.

At the same time, he noted that the need for additional financing of the state budget remains. The deficit next year will reach $3.5 billion per month, therefore there is a need for a rhythmic flow of funds to the state budget of Ukraine during 2023 to eliminate this gap.

According to the Ministry of Finance, the Netherlands provided $89 million in loan guarantees to Ukraine as part of a World Bank program. The World Bank's Board of Executive Directors approved more than $489 million in development policy loans entitled Financing of Recovery from Economic Emergency in Ukraine - FREE Ukraine between Ukraine and the International Bank for Reconstruction and Development (IBRD). $21 million was received as part of the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

During Marchenko's meeting with the Minister of Finance of Japan, Shun'ichi Suzuki, both parties discussed the financial situation in Ukraine, the needs of the state budget for 2023 and the restoration of damaged critical infrastructure. Marchenko also thanked the Japanese side for providing preferential financing to overcome the economic consequences of the war.

According to the report, since the beginning of the full-scale invasion, Japan has granted Ukraine a loan on concessional terms in the amount of $581 million. The funds were directed to the state budget of Ukraine to finance priority social and humanitarian expenses.

Marchenko noted that according to a joint assessment of the government, the World Bank and the European Commission, Ukraine needs $17 billion for rapid infrastructure restoration, and Kyiv is counting on the support of foreign partners.