Ukraine receives smallest amount of external financing in last six months
Pravda Ukraine
In November 2023, the state budget of Ukraine received about US$2 billion in external financing.
Source: Ministry of Finance.
Details: Among the donors in November 2023 were:
- European Union – US$1.6 billion;
- UK guarantee through the mechanism of the World Bank – US$400 million;
- World Bank – US$5 million.
At the same time, the funds from the EU are the tenth tranche within the framework of large-scale Macro-Financial Assistance programme (MFA) for 2023. The total financing under the programme has reached 18 billion euros, of which Ukraine has already received 16.5 billion euros.
The loan repayment period is 35 years, and interest and other payments for debt service will be compensated by EU countries instead of Ukraine. These funds are provided on preferential terms and are directed to the financing of priority expenditures of the state budget, in particular, the provision of social protection of the population, humanitarian needs, and wages of workers in the education and healthcare sectors.
The UK’s guarantee is part of the fifth additional financing within the framework of the World Bank project “Supporting public expenditures to ensure sustainable public administration in Ukraine” (PEACE in Ukraine).
The repayment term of this loan is 19 years with a 5-year grace period. The total volume of financial assistance under the guarantee of the UK in the current year has reached US$1 billion.
Financing from the World Bank is a loan from the IBRD within the framework of the World Bank Health Enhancement and Life-saving project (HEAL Ukraine). Thus far in 2023, about US$50 million have been raised within the framework of the joint project with the IBRD.
Reminder:
In total, in the 11 months of 2023, Ukraine’s Ministry of Finance attracted about US$37.4 billion in external financing for the urgent needs of the state budget.
At the same time:
- in July 2023, Ukraine received US$5.3 billion in grants and preferential financing from international partners;
- in August, Ukraine received US$4.6 billion in foreign financial aid;
- in September 2023, the Ministry of Finance attracted almost US$3 billion;
- in October, Ukraine received almost US$2.8 billion.
Support UP or become our patron!