According to Finance Minister Sergei Marchenko, Ukraine will be able to ensure timely payment of salaries and pensions to citizens by the end of the first half of 2024.
At the end of 2023, the government warned of the possibility of stopping pension and salary payments due to lack of external financing. However, as of February 2024, all social payments to Ukrainians are paid on time and in full, but the situation may change in the second half of the year. Finance Minister Sergei Marchenko said this during the telethon.
According to him, the government is already thinking about how to finance the budget deficit. But so far this problem does not concern ordinary Ukrainians, including those who receive salaries from the budget.
“A certain lack of funds is already felt, but Ukrainian citizens do not feel it yet. We are finding resources to meet these needs,” he said.
However, Marchenko noted that it is very important for Ukraine to receive financial assistance from partners, otherwise budget problems will become noticeable to everyone. The government will be able to pay salaries and cover social expenses from the state budget until the end of the first half of the year. The EU funds the government will receive in March will help here.
“I think we can spend the first half of the year without any problems, because we see that there are already clear calculations regarding European aid. We have also done everything necessary to get help from the World Bank. So these funds will allow us to resist,” said Sergey Marchenko.
The Minister predicts that the second half of the year will be difficult for Ukrainians in the absence of financial support, especially from the USA. During this period, there may be delays in salaries and failure to pay pensions and social benefits on time.
Let us remind you that the European Council supports the Ukrainian Financial Assistance Program plan, which aims to provide economic assistance to Ukraine in the amount of 50 billion euros at the beginning of February 2024. As Minister of Economy Yulia Sviridenko previously announced, the funds will be sold in three components. For example
- direct budget support – 39 billion Euro;
- Special investment vehicle to cover risks in priority sectors – 8 billion Euro;
- Technical support and interest coverage for loans within the scope of the program – 3 billion Euro.
We also note that, given the lack of foreign aid, the Ukrainian government has already launched “Plan B.” Therefore, the Ministry of Finance is working to bring the dividend advance payment as close as possible, increase the borrowing volume and implement other measures for January-February.
Source: Focus
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