In November, Ukraine received 6.5 billion dollars. foreign budget financing
These funds were enough to fully cover the budget deficit (6.1 billion) and part of the debt repayment (1.1 billion) in November, reports “What’s wrong with the economy?” Channel 1 of the Center for Economic Strategy.
For the first time, Ukraine received a loan from South Korea of $1,100 million. In addition, the budget received:
- $4.8 billion 1 loan from the World Bank, made possible by a grant from the United States in the amount of $1.6 billion;
- 1.35 billion 1 grant from the USA;
- 235 million 1 preferential financing from Japan;
- 100 million 1 loan from the Republic of Korea;
- 10.8 million euros 1 grant from Norway.
Thanks to significant revenues, Ukraine’s gold and foreign exchange reserves grew for the first time since August and reached almost $40 billion. A significant level of reserves allows the NBU to carry out interventions to stabilize the hryvnia exchange rate and, in general, is an important safety cushion for the economy.
Since the beginning of the full-scale invasion, Ukraine has already received $100.79 billion in external financial assistance. Foreign funding kept the Ukrainian economy from collapsing during the war.
Thanks to these funds, Ukraine is able to finance civilian budget expenditures when all its own revenues go to finance defense.
Over the years, Ukraine has received the most funds from the European Union ($40.5 billion), the United States ($28.2 billion) and the IMF ($11.4 billion). Significant amounts of financing also came from Japan ($6.3 billion), Canada ($5.4 billion), and Great Britain ($2.6 billion). In total, the Ukrainian budget was financed by 27 different countries and organizations.
Ukraine received 35% of the funding as a non-repayable grant, and 65% came in the form of soft loans. These loans are very different from regular commercial loans. For the most part, Ukraine will begin to repay the balance of loans in a few decades, and interest on loans for us is minimal or non-existent.
Despite the fact that the volumes of funding provided to Ukraine are unprecedented, they are still less than the need. During the years of full-scale war, the state budget deficit exceeded $120 billion; another $33.5 billion was spent on paying off domestic and foreign debts.
Thus, $100 billion of foreign funds covered 64% of the need for additional financing.
While there is a full-scale war, Ukraine will not be able to live without foreign funding. The basis of assistance for the next years should be $50 billion in grants and loans from G7 countries, secured by income from frozen Russian assets.
Source: Racurs
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