![Since the beginning of Russia's full-scale invasion, Ukraine has attracted $98.7 billion in external financing](https://img.unn.ua/img/2024/08/15/1723742710-3623-large.webp)
Since the beginning of Russia's full-scale invasion, Ukraine has attracted $98.7 billion in external financing
Kyiv • UNN
The Ministry of Finance reported $98.7 billion in direct budget support from donors since February 2022. The funds are allocated for social, humanitarian and priority non-military budget expenditures.
Since February 24, 2022, direct budget support from donor countries and international financial organizations has reached about $ 98.7 billion. This was stated by the Ministry of Finance of Ukraine, UNN reports.
Details
The Ministry of Finance emphasizes that the Government allocates all revenues from partners to social, humanitarian and other priority non-military expenditures of the state budget. The Ministry also emphasized that external financial aid cannot be used to cover security and defense expenditures.
Effective steps taken by the Government of Ukraine have helped to strengthen domestic financial capacity in a period of uncertainty. However, international assistance continues to be an important element in supporting the financial system and meeting the country's urgent needs. As of February 24, 2022, direct budgetary support from donor countries and international financial institutions amounts to about USD 98.7 billion
The funds raised are used for specific expenditures that have been identified with partners or for priority expenditures of the state budget in accordance with the priority order.
It is noted that the funds raised under the World Bank's projects are exclusively for the purpose agreed upon by the partners and the Government of Ukraine.
In total, since February 2022, Ukraine has received almost USD 40 billion through World Bank mechanisms. The largest donors are the United States, Japan, and the United Kingdom.
Since the beginning of the full-scale war, the World Bank has launched 7 projects to support key sectors of Ukraine's economy:
- Project "Supporting Public Expenditures for Ensuring Sustainable Public Administration in Ukraine" (PEACE in Ukraine). Reimbursement of expenditures for the payment of pensions, part of social benefits, salaries to doctors, teachers, civil servants (except for security and defense) and employees of the State Emergency Service. The project has attracted up to USD 30 billion.
- Investing in Social Protection for Improved Coverage, Resilience and Efficiency (INSPIRE) project. Social assistance to vulnerable populations and increasing the effectiveness of social support programs (including IDPs). The project received about USD 1.2 billion.
- “Emergency project for providing inclusive support for the restoration of agriculture in Ukraine” (ARISE). Restoration and support of the agricultural sector (in particular, expanding access to the 5-7-9 lending program for agricultural producers). USD 500 million has been attracted.
- “Strengthening the Healthcare System and Saving Lives” (HEAL Ukraine). Improving access to healthcare services, meeting urgent healthcare needs, and providing financial protection in emergencies. The project has already received over USD 124.5 million.
- “Housing Opportunities for People's Empowerment” (HOPE). Small and medium-sized repairs of partially damaged private and multi-apartment residential buildings. About USD 150 million has already been raised.
- Two Development Policy Loans (DPL/DPO). Supporting Ukraine's efforts to implement its structural reform agenda and providing critical financing. The total disbursement is USD 3 billion.
Priority expenditures of the state budget without reference to specific areas include funds from the EU (38 billion euros), funds from the IMF (10.2 billion US dollars), and budget support from the Government of Canada (over 5 billion US dollars). These include social and humanitarian expenditures that are not covered by earmarked budget support. As well as support for the energy sector, public debt service, economic recovery, etc
Recall
Ukraine has received 4.2 billion euros from the EU under the Ukraine Facility program. The funds will be used for social and humanitarian programs, and another tranche is expected by the end of the year.
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