Ukraine's external financing needs for 2024 reduced to US$37.3 billion

Ukraine’s external financing needs for 2024 have been reduced from US$41 billion to US$37.3 billion.

Source: Serhii Marchenko, Minister of Finance of Ukraine, during his speech at a meeting of finance ministers and central bank governors of the G7 countries, the EU, the IMF and the World Bank

Details: "The support of the G7 countries has played an important role in ensuring the financial stability of Ukraine. First of all, as the Minister of Finance, I am grateful for the regular and predictable financial assistance for Ukraine.

In 2023, thanks to well-coordinated cooperation with international partners, the Ministry of Finance of Ukraine managed to attract more than US$39 billion of external financing. By the end of this year, donor assistance will reach about US$42.3 billion," Marchenko said.

The minister stressed that timely receipt of the necessary assistance from international partners is vital for Ukraine's economic recovery and financial stability in the face of the challenges of a full-scale war.

Marchenko said the need for external financing in 2024 will reach US$37.3 billion, which has been verified by IMF experts.

"The need for external financing for 2024 has been reduced from US$41 billion due to measures to maximise state budget revenues, boost the domestic debt market and other measures.

In the state budget, all capital expenditures have also been reduced. Our key goals in 2024 are the military campaign and social support. And while defence and security are financed exclusively from domestic budget revenues, we are counting on the help of international partners to meet the needs of the social sector," Marchenko added.

Background:

• Ekonomichna Pravda reports that according to the state budget law, the total external financing needs for 2024 amount to US$41 billion. Currently, the Ministry of Finance has preliminarily agreed to receive less than a third of this amount. These are concessional loans from Japan and the UK, as well as tranches from the IMF. Ukraine needs the latter primarily for repayments on previous IMF loans.
• The government is also negotiating with Canada, Norway, and South Korea to raise funds. However, these loans are not comparable to the funding that the Ministry of Finance expects to receive from the largest donors, the US and the EU, and this has caused problems.

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