Now financial support from allies is helping Ukraine close its budget deficit and maintain large reserves of gold and foreign currency, but at the beginning of 2022 the situation was different.
In the first months of the full-scale Russian occupation, Ukraine needed urgent financial assistance to finance the military industry to maintain defense against invaders and to pay pensions and salaries to the population. Therefore, the Central Bank decided to issue additional hryvnia, that is, to put it roughly, to open the printing house, because there was no alternative solution where to quickly get the money. However, Ukraine has resorted to printing hryvnia only once during a period of full-scale war. Ekaterina Rozhkova, First Deputy Governor of the National Bank of Ukraine, spoke about this issue on the TV channel “We are Ukraine”.
Important
“There were no other options then, because our partners needed time to decide. We live without emissions last year, that is, in 2023 – we do not open the printing house,” Rozhkova said.
He stated that Ukraine received major support from partners amounting to 41 billion dollars throughout 2023. Future aid also exceeds $40 billion. It is this support that will allow Ukraine to finance its budget deficit and maintain large amounts of gold and foreign exchange reserves.
“Then, we worked with the Ministry of Finance, our colleagues, and the banking sector to ensure the functioning of the domestic securities market. Today, banks are actively working there. Market rates are attractive not only for banks, but also for banks. Therefore, this is also a strong source of closing the budget deficit. ” explained the first deputy governor of the Central Bank.
Important
Let us recall that Daniil Getmantsev, chairman of the Committee on Finance, Taxation and Customs Policy of the Verkhovna Rada, was in an interview. Focus He said that in 2024, all of Ukraine should receive $37.3 billion from partners. Thus, the International Monetary Fund (IMF) will provide a loan of 15 billion dollars to our state, and the income from the fund in 2024 will be 5.3 billion dollars.
We also note that on December 21, the Ministry of Finance told how Ukraine would cope without US and EU money. The ministry said “Plan B” is already in place.
Source: Focus
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