Without Western aid, 10 million pensioners will not receive their pensions on time, and 500,000 officials and 1.4 million teachers will not receive their salaries. This was stated by Economy Minister Yulia Svyridenko to the Financial Times.
She says the money is needed "urgently" - $37 billion in external support per year.
Svyridenko hopes that the EU will approve the support in February and give money by the end of March, but it will still not be enough.
Ukraine is already experiencing a shortage of funds, and about $5 billion in payments from international donors and creditors in December "will not be available" to cover the expenditure needs.
According to Svyridenko, the government's priority will be defense and debt service, and therefore "there is a huge risk of underfunding certain social sectors."
Attempting to temporarily sustain itself on its own through domestic borrowing or monetary financing from the National Bank could provoke inflation, undermine financial stability and as a result make Ukraine even more dependent.
Financial instability: Ukraine asks for $37 billion to avoid payment crisis
- Economics
- 27 December 2023 -14:40
-
243 views
Financial instability: Ukraine asks for $37 billion to avoid payment crisis
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Without Western aid, 10 million pensioners will not receive their pensions on time, and 500,000 officials and 1.4 million teachers will not receive their salaries. This was stated by Economy Minister Yulia Svyridenko to the Financial Times.
She says the money is needed "urgently" - $37 billion in external support per year.
Svyridenko hopes that the EU will approve the support in February and give money by the end of March, but it will still not be enough.
Ukraine is already experiencing a shortage of funds, and about $5 billion in payments from international donors and creditors in December "will not be available" to cover the expenditure needs.
According to Svyridenko, the government's priority will be defense and debt service, and therefore "there is a huge risk of underfunding certain social sectors."
Attempting to temporarily sustain itself on its own through domestic borrowing or monetary financing from the National Bank could provoke inflation, undermine financial stability and as a result make Ukraine even more dependent.