Ministry of Finance identified Ukraine's need for external financing as crucial for priority recovery
Deputy Head of the Ministry of Finance of Ukraine, Olga Zykova (photo: mof.gov.ua)
Ukraine's need for external financing to cover the budget deficit in the current year is approximately $37.3 billion. At the same time, $9.5 billion is needed for financing the urgent needs of recovery, according to the Ministry of Finance of Ukraine.
According to Deputy Minister of Finance Olga Zykovа, the Ukrainian government, after the start of Russia's large-scale invasion, is working on maintaining macroeconomic stability in conditions of extreme uncertainty and challenges.
"The support of international partners is extremely important, as we direct all domestic resources to resist the aggressor," the official said during a round table discussion on Ukraine's recovery and the role of the public and private sectors in the process (Ukraine Roundtable: Infrastructure Reconstruction and Financing) held on March 4 in Paris.
The ministry representative noted that ensuring the priorities of the state budget and the country's recovery are decisive for economic development and the return of Ukrainians home.
Zykovа thanked international partners for their support and emphasized Ukraine's needs in 2024. She also highlighted that rapid recovery is a key priority, as it contributes to creating safe living conditions for Ukrainians and the economic recovery of the country.
Assessment of damage from Russian aggression
According to the report Third Rapid Damage and Needs Assessment for Recovery and Reconstruction in Ukraine (RDNA3) developed jointly by the Ukrainian government, the World Bank, the European Commission, and the UN, Ukraine needs approximately $15 billion for rapid recovery in 2024.
Of this amount, about $5.5 billion has already been financed from the state budget and through donor support. Therefore, Ukraine still needs $9.5 billion to finance the priority recovery needs.
Recovery of Ukraine
The World Bank, the European Commission, and the UN increased their estimates of the total cost of reconstruction and recovery in Ukraine. It may require up to $486 billion over the next decade.
The most affected sectors as a result of the war are housing, transport, trade and industry, agriculture, and energy.
Meanwhile, the government recently responded to the most popular questions regarding the Recovery program, under which Ukrainians can receive funds for housing restoration.
Earlier, it was reported that the Cabinet of Ministers decided to allocate 9.3 billion hryvnias for the country's recovery from the consequences of Russian aggression. In particular, the money is intended for housing repairs.
