18:45 12.10.2022

Ukraine's need for additional funding in 2023 reaches $3.5 bln/month – Finance Minister

2 min read
Ukraine's need for additional funding in 2023 reaches $3.5 bln/month – Finance Minister

In the conditions of war, Ukraine needs to continue large-scale financing of the state budget deficit, in 2023 it is estimated at $3.5 billion per month, Finance Minister Serhiy Marchenko said at a meeting with the leadership of the International Monetary Fund (IMF) in Washington on October 11.

"Today we are witnessing a gradual recovery of the Ukrainian economy, however, in amid active hostilities, it is extremely important for us to launch a cooperation program with the IMF to ensure the stability of the financial system. Ukraine's need for additional financing in 2023 reaches $3.5 billion," he said.

Marchenko stressed that further cooperation with the IMF is one of the most important priorities for Ukraine.

At a meeting with IMF Managing Director Kristalina Georgieva, the minister discussed the possibility of a new loan program to ensure priority expenditures of the state budget of Ukraine in 2023, and at a meeting with Director of the European Department at the IMF Alfred Kammer, Marchenko expressed hope that the parties would determine the conditions for launching a new cooperation program in the near future.

This Wednesday, within the framework of the meeting of the IMF and the World Bank, the second meeting of the round table of ministers to support Ukraine is scheduled with the participation of the heads of international financial organizations Georgieva and David Malpass. The parties will discuss the country's funding needs, priorities for supporting essential services during the war, and priority recovery and reconstruction projects that can be started quickly.

The first meeting of such a round table was held at the spring meeting of the IMF and World Bank on April 21. It announced Ukraine's monthly need of $5 billion to finance the state budget deficit in the context of the war unleashed by Russia.

The draft state budget of Ukraine for 2023, which was adopted at first reading, provides for external financing of the deficit in the amount of $38 billion, or about $3.2 billion per month.

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