The Ministry of Finance and the National Bank of Ukraine (NBU) are more optimistic about the situation with the resumption of budget financing from the United States than it might seem, but they also have a scenario in case such financing is further suspended, Finance Minister Serhiy Marchenko has said.
“We are ready for it (the scenario of cessation of U.S. funding), but I think that other stakeholders and Ukrainian society are not ready for it. Therefore, we believe that it is too early to talk about this scenario, because it may be unpleasant,” the Minister of Finance said at the annual meeting of the European business assoсiation on Wednesday in Kyiv.
“For this year we know how to act. Next year we understand how to act. It is important that sustainable interaction with the IMF remains at the center of understanding,” the governor of the National Bank, Andriy Pyshnyy, said in turn.
Commenting on his statements about the unconfirmed $29 billion in external budget financing in 2024 out of the planned $41 billion, Marchenko noted that they have their target audience: partners should be conveyed that Ukraine is uncomfortable with such uncertainty, but this is in no way an accusation.
“We have a rather delicate relationship – we have been dancing this dance for quite a long time: sometimes we are invited, sometimes we have to invite. Therefore, we clearly understand that in this story it is important not to go too far with communications, but at the same time to show that it worries us,” the Minister of Finance described the situation.
He added that the government and the National Bank are monitoring the situation and hope for the wisdom of the American people and their representatives. “At the same time, we already know about the support of the Administration (White House), it is clearly stated and articulated in the relevant acts of legislation, so in this regard we are more optimistic than it would seem in the messages,” Marchenko emphasized.
The minister also said that in communication with the EU, Ukraine has expressed its desire to have more funds next year from the EUR 50 billion Ukraine Facility program, designed for four years.
The Minister of Finance added that a search for alternative sources is also underway: negotiations are actively underway with the governments of Canada, Japan, Norway, and South Korea.
As reported, Marchenko previously indicated plans to receive EUR 18 billion from the EU, $8.5 billion from the United States, and $5.4 billion from the IMF as part of financing the state budget deficit next year.