Delay in extending U.S. budget financing support to Kiev "makes IMF nervous' - Ukrainian PM

MOSCOW. March 4 (Interfax) - The delay in extending U.S. assistance to Ukraine for 2024 is also seen as a matter of concern by the International Monetary Fund (IMF), from which Kiev expects to receive $5.4 billion under the Extended Fund Facility (EFF) in 2024, whereas Ukraine needs $37 billion to cover this year's budget deficit, Prime Minister Denis Shmygal said.

"The four-year-IMF program envisages support from the G7 countries and the EU. That is why, the delay with U.S. assistance makes nervous not only us, but also the IMF when it comes to the program that relies on partners' support," Ukrainian media quoted Shmygal as saying at a press conference in Kiev.

Ukraine still hopes to receive $11.8 billion in budget support from the U.S. in 2024, he said. "Receiving it, as well as around $50 billion in military support, this year is critical," he said.

Shmygal hopes that the U.S. will make a decision on providing assistance to Ukraine in 2024.

Ukraine expects to receive the EFF's fourth $900 million tranche, a 4.5-billion-euro tranche from the EU under the Ukraine Facility program and about $2 billion from Japan and Norway in March - early April, Shmygal said, adding that these funds will allow Kiev to cover the external financing deficit that emerged at the beginning of the year.

As reported, the U.S. Senate in February passed a $95 billion emergency defense spending bill, which would provide about $60 billion, including $7.85 billion in budget support, to Ukraine, and some $14 billion to Israel. The document was then submitted to the House of Representatives, which, however, adjourned until February 28 without holding a vote on this issue. It remains unclear when the House of Representatives will debate the bill.

As reported, the four-year EFF totaling around $15.6 billion was approved on March 31, 2023, and is part of a $122 billion package of international support for Ukraine. The first $2.7-billion disbursement was provided in early April, with the second and third tranches of SDR664 million (around $881 million - $890 million at the then exchange rate) extended in early July and mid-December 2023.