Ministry of Finance unveils spending plan for EU's €4.5 bln tranche to Ukraine
Sergii Marchenko, Minister of Finance of Ukraine (Vitalii Nosach, RBC-Ukraine)
The State Budget of Ukraine has received the first tranche under the transitional financing amounting to 4.5 billion euros under the European Union's financial instrument, the Ukraine Facility, according to the Ministry of Finance of Ukraine.
"Raised funds will help timely and fully finance priority social and humanitarian expenditures of the state budget," said Finance Minister Sergii Marchenko.
The press service has outlined a comprehensive agenda within the framework of transitional financing for Ukraine. These five reforms, spanning areas such as public finance management, anti-corruption efforts, and business environment development, among others, demonstrate Ukraine's steadfast commitment to progress and development.
Ukraine may receive the next tranche of 1.5 billion euros under transitional financing in April based on satisfactory reform implementation results and positive assessment by the European Commission, the Ministry of Finance reported.
The Ukraine Facility is a tool that allows Ukraine to receive financial and technical assistance from the EU, totaling 50 billion euros from 2024 to 2027. Of this amount, 38.27 billion euros will be allocated for budget support, 6.97 billion euros for an investment fund, and 4.76 billion euros for technical and administrative support.
Large tranches for Ukraine
Last week, the National Bank of Ukraine (NBU) announced that Ukraine would receive $10 billion in international financing during March-April.
Deputy Chairman of the NBU Sergiy Nikolaychuk stated that this money would go to the budget and immediately become international reserves.
"This currency will not go directly to the foreign exchange market. At the same time, the government will use these funds to finance its expenditures. Part of them, most likely, will also be used and affect the state of the foreign exchange market," he said.
Nikolaychuk specified that Ukraine expects to receive 4.5 billion euros from the EU in March, 1.5 billion Canadian dollars, 1.5 billion US dollars from the World Bank, and 900 million US dollars from the IMF. Additionally, the EU will provide another 1.5 billion euros in April.
