Ukraine could face $35 billion funding gap in 2027 — Bloomberg
Photo: IMF Managing Director Kristalina Georgieva (flickr.com)
Ukraine could face a funding shortfall of up to $35 billion in 2027. The total funding gap could reach $54 billion by 2029, according to Bloomberg.
According to preliminary estimates by the International Monetary Fund, Ukraine may face a shortfall of between $30 billion and $35 billion next year to meet its financial needs.
Sources familiar with the matter told Bloomberg that the potential shortfall in 2028 will be about $17 billion. Another $2 billion or so may be needed in 2029.
Thus, Ukraine’s total funding gap through 2029 could reach up to $54 billion. However, these estimates are preliminary and subject to change.
Ukraine seeks additional funding
Against the backdrop of the projected shortfall, international partners continue to discuss further financial support for Ukraine.
On Tuesday, September 29, a meeting of Ukraine's donors took place in Brussels, during which participants discussed accelerating negotiations on providing additional aid.
Earlier this year, the European Union approved a loan package for Ukraine totaling 90 billion euros, or about $102 billion. At the same time, the EU is calling on its partners to fulfill their commitments to provide an additional 30 billion euros for this year and next.
The European Commission and the IMF are also urging the Ukrainian government to implement its reform plan. This is expected to help Ukraine secure international aid and strengthen oversight of how the funds are used.
Options EU considers
EU member states are still discussing mechanisms for providing additional funding to Ukraine. The need for new funds is growing amid expectations that the war will continue into next year.
Among the possible sources of funding, assets of the Russian central bank frozen in Europe are once again being considered. The amount in question is approximately 210 billion euros.
Other EU countries are proposing to raise the necessary funds by issuing additional joint bonds.
Prime Minister Serhii Koretskyi warned of the risk of losing part of the international funding if votes in the Verkhovna Rada are delayed.
This involves $29.5 billion in aid, for which the government and parliament must fulfill a series of obligations.
Finance Minister of Ukraine Serhii Marchenko also warned of possible delays in social benefit payments if Ukraine does not receive the necessary external financing.
