To ensure that the exchange rate in Ukraine does not exceed the level of 50 hryvnias per dollar and that retirees and state employees receive their payments on time, the government needs to obtain guarantees from partner countries to provide financial assistance and loans in 2024. How much money can Ukraine receive?
The government’s hope for next year is to receive at least $42 billion in aid from partners. However, it will become more difficult to obtain financial support from partners. writes about this Focus in a new article “Money for Ukraine. Why may the country’s financial support decrease and why is this dangerous?”
Finance Minister Sergei Marchenko recently told Reuters that Ukraine is finding it increasingly difficult to receive financial support as officials in donor countries focus on upcoming elections and geopolitical tensions escalate. Interviewed Focus Economists say it’s true that the government will have a harder time raising funds next year than this year.
“Taxpayers in other countries want these funds for their own needs, and not for vague geopolitical tasks. Politicians are also dependent on parliamentary and presidential elections. Therefore, they need to look at the opinions of voters. Sooner or later this aid will increase significantly and decrease in volume,” says CASE Ukraine general Director Dmitry Boyarchuk explained: Only European Union funds are guaranteed in 2024. As for support from the United States, it has not been confirmed yet. “We will receive the lion’s share of the necessary aid for 2024, and these are the USA and the EU. However, it is already clear that this process is becoming increasingly difficult. We will probably need to consider other sources by 2025“, says Boyarchuk.
Maxim Samoiluk, Economist of the Center for Economic Strategy, stated that the state budget for 2024 (calculated at a rate of 36.6) includes foreign financial aid of approximately $ 46.2 billion.“These are funds that our government plans to receive from the US, the EU, the IMF and other donors. But of the major aid packages, only IMF aid has been approved; funds from the EU should fall under the Ukraine Facility” program still agreed upon“, says the expert. He noted that Ukraine’s key donors have not changed: the USA and the EU. “EU funding is still being agreed and there shouldn’t be any unpleasant surprises; we’ll see what happens with funding from the US, but the Biden administration is clearly committed to securing that funding.”“, says Samoylyuk.
As reported Focus Ukraine cannot cover all the necessary expenses on its own, says financial analyst Andrey Shevchishin. This means that obtaining funding from partners is a critically important issue. “The decline in production, work stoppages, closure of ports and refugees are the factors that prevent us from generating income from the budget. At the same time, costs increased even more in the context of military operations, so it would not be possible to ensure the full costs and stability of the system even with a functioning economy without foreign assistance.“, Shevchishin remarked.
Let us remind you that the 2024 state budget draft includes changes in the amount of social assistance paid to children and disabled people.
Previously Focus He wrote that Biden’s new financing package includes $60 billion for Ukraine.
Source: Focus
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