Ministry of Finance: Ukraine's need for international financing is $3B per month

This is stated by the press service of the Ministry of Finance of Ukraine following the working visit of the Ministry's leadership to Luxembourg.

During the panel discussions, representatives of the Ministry of Finance and international partners discussed the current financial and economic situation in Ukraine, support of international donors and financial organizations.

“Despite the devastating economic consequences of the Russian war in Ukraine (in particular, reduction of economy by 30.3%, inflation of 26.6% in annual terms, the state budget deficit of USD 5 billion per month), the Government managed to keep the situation under control and ensure macro-financial stability of the state in 2022,” reads the statement.

According to Deputy Minister of Finance of Ukraine Olga Zykova, the Government carried out systematic work to reduce the budget deficit by increasing tax and customs revenues, as well as optimizing a number of areas of budget expenditures. However, in 2023, the need for international financing remains significant and amounts to about USD 3 billion every month.

The predictability, regularity and rhythm of the inflow of funds are extremely important conditions, as this will provide an opportunity to avoid monetary financing, which has a negative impact on the economy. Obtaining the specified funding will allow us to effectively resist the full-scale armed aggression of the Russian Federation in the future.

"We continue active cooperation with partner countries and international organizations – the World Bank, IMF, EBRD and EIB. Ukraine is interested in ensuring effective, accountable and transparent use of funding, including from donors. Active work is currently underway to create appropriate mechanisms," Zykova noted.

As reported, Ukraine received $32 billion in international financial assistance, including $14 billion dollars in grants, in 2022.

The World Bank and the European Commission estimated Ukraine's recovery needs at $350 billion as of June 2022 but the amount may exceed $600-750 billion, Prime Minister of Ukraine Denys Shmyhal said at a business forum in Luxembourg.

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