Ukraine receives 1-billion-euro grant from Germany - finance ministry
MOSCOW. July 4 (Interfax) - The state budget of Ukraine has received a grant of one billion euros from Germany, Ukrainian media outlets said citing the Ukrainian Finance Ministry on Friday.
"The grant funds were transferred to the state budget via a special administrative account opened by the International Monetary Fund to allocate money from donor states to assist Ukraine," the ministry said in a press statement.
According to the statement, the derived funds will be used to cover primary budgetary expenditures under martial law.
Ukraine has already received 1.3 billion euros from Germany since February 24 to support its financial and budget system, the Finance Ministry said.
The Ukrainian Finance Ministry earlier said that it received a loan from the World Bank worth 446.8 million euros with a guarantee of 424.6 million euros from the United Kingdom, a grant of $1.3 billion from the United States via the multi-donor trust fund set up by the World Bank, and Japan's loan in the amount equivalent to about $500 million.
In April 2022, the International Monetary Fund made a decision to set up an administrative account for donations in the form of a share of Special Drawing Rights from donor countries for Ukraine. All funds raised through this account will be spent on maintaining Ukraine's financial stability through grants and loans.
Germany became the second country to use this instrument after Canada which had provided a low-interest loan of 1 billion Canadian dollars (CAD), equivalent to $773 million, in early June.
The Ukrainian government estimates the budget's monthly needs to finance the deficit as $5 billion. Ukrainian Finance Minister Serhiy Marchenko forecast earlier that international financial support to Ukraine would increase to $4.8 billion in June from $1.5 billion in May, and thanks to funds transferred at the end of the month, it ended up nearing this amount. Marchenko also said that the government expected to retain such considerable amounts of foreign founding in July as in June. In particular, Ukraine is expecting the second tranche of the U.S. grant of about $1.3 billion and a loan worth one billion euros from the European Union.