International financial support for Ukraine will continue, although in smaller amounts - NBU
Kyiv • UNN
Ukraine is expected to receive about USD 37 billion in international loans and grants this year, which will increase its foreign exchange reserves. This financial support, along with domestic borrowing, will ensure exchange rate stability and help cover the government's fiscal needs.
Continued international financial support for Ukraine will help keep international reserves high and ensure exchange rate stability. Ukraine is expected to receive about $37 billion in external loans and grants this year. UNN reports this with reference to the National Bank of Ukraine.
Details
The Bank notes that thanks to external support and the NBU's consistent policy, Ukraine's international reserves grew by 42% in 2023 and reached USD 40.5 billion. THE BANK NOTES.
International aid will remain the main source of capital inflows to the country in the future. Despite delays in international aid inflows at the beginning of the year, it is expected to resume its rhythm in the coming months
According to the baseline scenario of the NBU's forecast, Ukraine will receive about $37 billion in external loans and grants in 2024.
The NBU also predicts that as security risks decline in the coming years, Ukraine will regain the ability to finance its own needs independently. Therefore, official external financing is expected to gradually decline (to about USD 25 billion in 2025 and USD 12 billion in 2026).
At the same time, it is noted that this assistance will be sufficient to maintain a sufficient level of international reserves, which will range from 37-42 billion dollars. The NBU expects the amount of international reserves to be between USD 37 and 42 billion in 2024-2026. The NBU believes that this will be sufficient to ensure exchange rate stability.
Together with domestic market borrowing, international support will also help finance the government's still significant fiscal needs
