Ukraine needs additional financing of $82 bn to bridge the financing gaps through 2024-2027
Ukraine needs additional financing of $82 bn to bridge the financing gaps through 2024-2027
CES Deputy Director Maria Repko spoke about this in her recent speech in the European Parliament.
IMF predicts that аfter debt redemption, Ukraine is left with a financing gap of $124 bn for the years 2023-2027. While external financing needs of 42 bn in 2023 have been secured with firm financing commitments, an additional $82 bn is still needed in the coming years.
“We are grateful for the promises made by our European friends and the G7, which the IMF has accounted for at $115 billion until 2027. But it is our sincere hope that part of this amount, preliminary pledged by the EU, will be included in the medium-term EU budget.”, says Mariia. This step would provide a much-needed sense of stability in turbulent times.
Mariia also proposes a way to solve the problem of mounting indebtedness connected with the budget deficit funding. One possible option to cover the gap is using arrested Russian assets in Europe or at least making available proceeds from the investment income on them.
The latter, despite possible legal hurdles, could cover approximately a quarter of the annual budgetary support needs, put less pressure of debt relief in the future as well as provide relief for the EU and other partner countries’ budgets.