22 August 2024, Thursday, 12:58 227

Need for external financing will increase by USD 12-15 billion in 2025 - Finance Ministry

Editor: Daria Zubkova

Читати українською

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The need for external financing of Ukraine in 2025 will increase by about USD 12-15 billion based on updated forecasts for the next year.

This is stated in the message of the Ministry of Finance, Ukrainian News Agency reports.

"According to the IMF's calculations in the Extended Fund Facility program, for 2025 the need for external financing is estimated at the level of USD 22.7 billion. Based on the revision of the assumptions on which the forecast for the next year is based, the need for external financing will increase by USD 12-15 billion. The activity of hostilities and the risks of the duration of the war, as well as the systematic growth of security and defense sector expenditures, are key factors affecting the growth of financial needs," Deputy Minister of Finance, Olha Zykova, stressed.

It is noted that in 2024, Ukraine managed to attract about USD 24.5 billion of direct budget support.

By the end of this year, Ukraine expects to attract another USD 13.5 billion in external financing:

about EUR 4 billion from the European Union as part of the financial instrument Ukraine Facility;

over USD 3.9 billion from the United States;

about USD 2.2 billion from the IMF based on the results of the EFF Program;

about USD 2 billion from the Japanese government;

about USD 500 million from Great Britain.

Regarding the use of profits from russia's immobilized sovereign assets for the benefit of Ukraine, the Deputy Minister of Finance noted that it is important to find mechanisms to provide Ukraine with additional financial resources for 2025 as soon as possible.

"In this context, the joint decision of the G7 to create a financing mechanism secured by revenues generated by frozen russian assets in favor of Ukraine is critical for the full financing of all budgetary needs. We are convinced that this financing should be unconditional and should not lead to a deterioration of debt sustainability. At the same time, we see this decision as the first step towards the complete confiscation of all frozen assets of the russian federation," Zykova emphasized.

As Ukrainian News Agency earlier reported, the Budget Declaration for 2025-2027 foresees a 2025 budget deficit of 18.2%.

Ukraine is conducting negotiations on the restructuring and partial write-off of the state debt.