The need for external financing for 2024 has been reduced from $41 billion to $37.3 billion, Ukrainian Finance Minister Sergiy Marchenko said during a meeting of finance ministers and central bankers of the G7 countries, the EU, the IMF and the World Bank, UNN reports.
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The Minister of Finance emphasized the importance of mobilizing resources for the budget needs of Ukraine in 2024.
Marchenko noted that in order to preserve Ukraine's economic recovery and financial stability in the face of the challenges of a full-scale war, timely receipt of the necessary assistance from international partners is vital. The need for external financing in 2024 will reach USD 37.3 billion, which has been verified by IMF experts.
"The need for external financing for 2024 has been reduced from USD 41 billion due to measures to maximize state budget revenues, activate the domestic borrowing market and other measures. All capital expenditures of the state budget were also reduced. In 2024, the key tasks are the military campaign and social support. And while defense and security are financed exclusively at the expense of domestic budget revenues, we are counting on the help of international partners to meet the needs of the social sphere," Marchenko said.
He also pointed out that the support of the G7 countries has played an important role in ensuring Ukraine's financial stability. "First of all, as Minister of Finance, I am grateful for the rhythmic and predictable financial assistance for Ukraine. In 2023, thanks to well-coordinated cooperation with international partners, the Ministry of Finance of Ukraine managed to attract more than USD 39 billion of external financing. By the end of this year, donor assistance will reach about USD 42.3 billion," Marchenko emphasized.
The support of international partners, combined with effective decisions of the Ukrainian government during the full-scale war, helped to maintain financial and economic stability, the ministry said.
"In 2023, Ukraine's economy is expected to demonstrate resilience and development. GDP growth is projected at up to 5%, inflation has decreased from 26.6% last year to 5.1% in November this year. In the first 11 months of 2023, state budget revenues from customs and taxation increased by USD 4.4 billion compared to the same period in 2022," the Minister added.
The leaders of the G7 financial bloc, in turn, noted the effective work of the Ministry of Finance and the Government of Ukraine to overcome the negative economic consequences of the war. The parties also assured of continued support.