National Bank Governor warns of risks of reducing financial assistance to Ukraine
head of the National Bank of Ukraine, Andriy Pyshnyy (Photo: facebook.comNationalBankOfUkraine)
Ukraine has received assurances from Western countries regarding financial support in 2024. However, uncertainty is growing and needs to be considered, according to the head of the National Bank of Ukraine (NBU), Andriy Pyshnyy.
"Regarding the risks for the next year, much attention is paid to guarantees of receiving international assistance," he said at a meeting with representatives of Austrian and German companies in Ukraine.
Pyshnyy recalled that the risk of the rhythm of external financing has partially materialized.
"However, the assurances we received from our partners, along with the successful completion of Ukraine's second review of the IMF program, provide a basis for counting on the support of the donor coalition in 2024," he said.
At the same time, as the head of the NBU noted, "The truth is also that uncertainty is growing, and with it, risks are growing, and we need to draw conclusions from this turbulence and take it into account in further work."
Aid to Ukraine
Earlier, the head of the NBU stated that in December, the risks of the rhythm of Ukraine's assistance inflows were realized. "Rhythm - yes, it can be undermined now, but we are not ready to say that it is undermined sufficiently, that expectations regarding the volumes of financial assistance are undermined," Pyshnyy noted.
At the same time, the NBU expects a resumption of the rhythm of external financing shortly. The foundation for this includes the successful completion of the second review of the IMF program, the Extended Fund Facility (EFF) for Ukraine, and the corresponding assurances of international partners, which are an integral part of this program.
In December, difficulties arose with the approval of a $60 billion aid package for Ukraine in the US Congress and the EU package for 2024-2027 for €50 billion.
The Senate plans to consider the aid package for Ukraine soon. The EU will return to the issue of assistance in January after Hungary blocked the package.
The NBU expects total assistance to Ukraine in 2024 to amount to $38.5 billion.
