Ukraine needs more Western support so as not to resort to printing press - EBRD

Beata Javorcik, the chief economist of the European Bank for Reconstruction and Development (EBRD), said this in Davos, Ukrinform reports, citing The Guardian.

She noted that Ukraine's economic situation was challenging, despite growth of just short of 5% last year.

"The big risk is that if money doesn't come in from abroad things could spiral and the government might have to resort to the printing press," Javorcik said.

She noted the "very good job" of the Ukrainian government in ensuring macroeconomic stability.

"We need to support Ukraine not only militarily but through budget support," she added.

Javorcik said the EBRD was planning to invest between EUR 7.5 billion and EUR 15 billion over the next five years in Ukraine, with the focus on supporting the private sector.

She added that there was a "substantial risk," given the likelihood of the war continuing, of the economy being derailed.

The National Bank of Ukraine did not issue hryvnias in 2023 to cover the budget deficit. At the same time, international financing remains critical to the state budget, NBU Governor Andriy Pyshnyy said.