Ukraine’s Prime Minister reveals amount of funds government expects to receive from US, EU and IMF next year

WEDNESDAY, 14 SEPTEMBER 2022, 19:55 – DANA HORDIYCHUK

Ukraine is going to need US$38 billion next year to cover the budget deficit, which is expected to be covered thanks to assistance from its international partners – the United States, the EU and the IMF.

Prime Minister Denis Shmyhal said this during a press conference on Thursday.

He noted that in view of the support expected from its partners by the end of the year, in particular US$11.7 billion from the United States, US$1.4 billion from the IMF and US$8 billion from the European Union, Ukraine will be "financially stable" during 2022.

"Next year, we are talking about three sources of extra funding for the budget deficit from our partners," he said. 

Ukraine is requesting 12 billion euros of EU macro-financial assistance, which is in fact 1 billion euros per month. The IMF could provide US$12 billion under its programme for next year, and the United States could provide US$1.5 billion a month.

"In total, this is US$3.5 billion of funding per month, which will completely cover our budget deficit," Shmyhal concluded.

At the same time, he added that Ukraine also has a "safety net" in the form of war bonds, in case there are gaps between tranches from its partners, or in case of emergencies. 

Background: 

The Cabinet of Ministers of Ukraine has approved the draft state budget for 2023 and it has been submitted for consideration by Parliament. 

The document provides for a reduction in budget deficit funding requirements. The government is proposing to spend over US$3 billion per month (20% of Ukraine’s GDP) for that purpose in 2023, against US$5 billion per month in 2022.

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