ua en ru

'We cannot wait till March': Ukrainian PM asks donors for prompt funding

'We cannot wait till March': Ukrainian PM asks donors for prompt funding Photo: Prime Minister of Ukraine Denys Shmyhal (Vitalii Nosach, RBC-Ukraine)

Prime Minister of Ukraine Denys Shmyhal has appealed to international donors and requested meetings due to a potential delay in financial assistance to Ukraine, reports Bloomberg.

In a letter to the coordination group overseeing funds, Shmyhal stated that Ukraine needs financing as soon as next month. It is intended for the needs of the country's main budget.

"To uphold macroeconomic stability, it is imperative that we receive sufficient, prompt, and predictable external financing, beginning January 2024," the letter said.

Shmyhal believes that it is currently not prudent to discuss projects for the country's recovery and reconstruction, as Ukraine is fighting for survival.

"We cannot wait till March to finance our social needs," Shmyhal stated.

It's worth noting that recently, the Ministry of Finance of Ukraine announced that funding needs for 2024 amount to $37.3 billion after receiving over $42 billion in external aid in 2023.

According to Shmyhal, donors should hold a meeting in January before the scheduled meeting next month.

Issues with aid

Earlier, First Deputy Prime Minister of Economics Yulia Svyrydenko informed the Financial Times that Ukraine might have to postpone pension and public servant salary payments if the EU and the US do not provide the promised financial assistance at the beginning of next year.

Later, Svyrydenko attempted to clarify her statement on her Facebook for the foreign press. In particular, she stated that the risk of delays is in the long-term perspective, and the government has a "Plan B" for the beginning of 2024 but did not specify its details.

Pension indexation

In September, the Ministry of Finance, in an explanatory note to the draft state budget for 2024, stated that the "provided amount of expenditures for pension provision will allow financing pension payments, supplements, and increases to pensions funded by the budget, as well as carry out annual pension indexation."

The Ministry of Social Policy proposed to index pensions in 2024 from March 1, as legislatively determined. The indexation amount will depend on the inflation rate and the average salary. These figures can be discussed at the beginning of 2024 after receiving statistical data for 2023.