Central bank deputy director details financial aid Ukraine expects in 2022

Yuriy Heletiy, Deputy Chairman of the National Bank of Ukraine

Read also: Biden announces new $625 million aid package for Ukraine

“Maybe part of it will be transferred next year,” he said.

“But, given the macro-financial assistance from the EU, the question raised in the US Congress to allocate additional resources to Ukraine, in particular to ensure fiscal sustainability, we expect significant amounts of assistance international by the end of the year.”

Read also: Ukraine plans to seek at least $300 billion in war reparations from Russia

Commenting on the $38 billion in external financing envisaged in the draft state budget for 2023, Heletiy stressed that the priority for the government and the central bank in this direction in the coming month is to work with the IMF and to open a major new program for Ukraine. , in addition to receiving another $1.3 billion in emergency funding in the coming days under the RFI Facility.

“It can be either EFF (Extended Fund Facility) or Stand-by,” said the deputy head of the NBU, who is currently in Washington with his colleagues from the Ministry of Finance at the annual meeting of the IMF and the World Bank. . .

Read also: Ukraine’s economy will shrink by 45% because of the war, according to the World Bank. All fingers in the air in reality

“That is to say a classic extended program aimed at closing the balance of payments deficit and implementing structural reforms. It will be a kind of reference for all international partners. We are actively working on it. »

According to him, the IMF mission will take place in October to discuss a number of issues, including the macroeconomic situation in Ukraine, the 2023 budget and exchange rate policy.

“It will be a team with a new head of mission,” Heletiy noted.

“I hope we will have a fruitful dialogue that will contribute to a better understanding by the IMF of the current challenges for our country, our fiscal and monetary policy.”

At the same time, he added that the IMF program alone is unlikely to be enough, so it is necessary to work actively with other partners, mainly with the European Union, the United States and other countries of the G7.

“The NBU, like no other, is interested in receiving this aid,” the deputy director of the central bank said.

“This will reduce the need for monetary financing. For us, stopping fiscal monetization is a priority.

Read also: Ukraine’s military, politics, economy and citizens have all been transformed by six months of war

According to him, the possibility of stopping the monetary financing of the budget next year will depend on its final text, the volume of international aid and the pace of its receipt.

“$38 billion is a difficult and extremely ambitious task. Indeed, if Ukraine receives these funds, there may not be a need for monetary financing,” Heletiy said.

Earlier, Finance Minister Serhii Marchenko told a meeting with US Treasury Secretary Janet Yellen in Washington that Ukraine expects to receive $5 billion from the EU, $4.5 billion from the United States and $1.3 billion dollars from the IMF by the end of this year.

Within the framework of the meetings of the IMF and the World Bank on October 12, the second meeting of the ministerial round table on support for Ukraine is scheduled with the participation of the heads of international financial organizations Kristalina Georgieva and David Malpass. He will discuss the country’s funding needs, priorities for sustaining essential services during the war, as well as priority rehabilitation and reconstruction projects that can be started quickly.

The first meeting of such a roundtable was held during the spring meeting of the IMF and the World Bank on April 21. It was stated that Ukraine needed $5 billion a month to finance the state budget deficit under the conditions of the war started by Russia.

The draft Ukrainian state budget for 2023, adopted in the first reading, provides for external financing of the deficit in the amount of 38 billion dollars, or about 3.2 billion dollars per month.

Help NV continue reporting on the Russian invasion

Read the original article at The new voice of Ukraine