If the IMF Board of Directors makes a positive decision, the third tranche of $900 million to Ukraine will be confirmed, as well as the support of international partners.
A positive response from the International Monetary Fund (IMF) Board of Governors on the second revision of the EFF expanded financing program and the allocation of the third tranche of $ 900 million is expected to reach Ukraine in December. This was announced by the President of the National Bank of Ukraine Andrey Pyshny, Interfax reported.
According to the head of the Central Bank, there are already conclusions at the staff level (IMF), the Central Bank, like the government, has signed a memorandum of understanding on a new edition (on economic and financial policy).
“We are now waiting for the decision of the board of directors of the International Monetary Fund,” he said at the annual forum of corporate directors of the Association of Professional Corporate Governance in Kiev.
Pyshny noted that the positive decision of the IMF Board of Directors will mean not only the allocation of the third tranche of $ 900 million, but also the confirmation of the support of Ukraine’s international partners, since the total framework of the EFF program of $ 15.6 billion is $ 115 million. billion in the basic version and 140 billion in negative.
According to the head of the NBU, the institution still expects to receive $38 billion in foreign financial aid in 2024. At the same time, the risk of interruption of this support continues. Moreover, the bad news is that the coalition partners are entering a difficult phase of political turbulence.
The Ukraine issue is not yet included in the IMF Executive Board meeting calendar, which is currently scheduled for December 15.
400 billion hryvnia grant: What does the Cabinet of Ministers report by the way?
Prime Minister Denis Shmygal said at the meeting of the Cabinet of Ministers on December 5 that Ukraine has accumulated almost two trillion hryvnias of internal resources in the general and special fund of the state budget for 11 months of this year: taxes, fees, charges and other payments, as well as about 400 billion hryvnias from partners grant.
According to Shmygal, the state spent 3.4 trillion hryvnia in 2023. Primarily for security and defense as well as critical budget items. According to him, the budget deficit exceeding 1 trillion hryvnia is being closed with the support of partners.
“Ukraine received $37.4 billion in external financing in 11 months, about $2 billion of which was in November. This includes, in particular, macro-financial assistance from the EU, funds from the IMF, loans from Canada, IBRD and the World Bank. and other aid. The grant source is especially valuable to us. It makes it possible to cover current expenses and make restoration and development investments without increasing debt obligations,” said Shmygal.
Moreover, Ukraine received almost 405 billion hryvnia in grants from January to November 2023.
Who provided the grants?
According to Shmygal, grant support came primarily from the United States, Germany, Spain, Finland, Ireland and other partner countries.
“We have raised $14 billion with World Bank funds in 2023. A collaboration of unprecedented magnitude has been initiated and results are already being achieved. Now we are starting two more important collaborations with the support of the World Bank and the Japanese government.” Denis Shmyhal said that the first is to finance the agricultural sector in the amount of 550 million dollars. “The second is to finance social aid. In particular, subsidies and payments of 1.2 billion dollars for higher education.” said.
We add that social assistance will be provided by the World Bank to Ukrainians who suffered from the devastating consequences of the Russian occupation.
Focus also reported that starting January 1, 2024, the maximum pension in Ukraine will be increased to UAH 23,610, which is UAH 2,680 more than now.
Source: Focus
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