Funding gap for Ukraine's quick recovery in 2023 stands at $11 bln - WB
MOSCOW. April 11 (Interfax) - Ukraine needs colossal funds for its recovery and reconstruction, and the World Bank assesses a shortfall in funding critical expenditures in 2023 at $11 billion, Ukrainian media quoted WB President David Malpass as saying in opening regular Spring Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund in Washington on Monday.
Malpass announced the 3rd roundtable ministerial meeting in support of Ukraine on April 12, in particular, to discuss ways to find the necessary funds to finance Ukraine's quick recovery.
IMF Managing Director Kristalina Georgieva said the crisis in Ukraine is pushing food prices up. "It is creating more geopolitical tensions and reducing the ability of the world to work as one," Georgieva said.
Malpass said the WB has played a considerable role in helping to direct international resources to Ukraine's civilian sector and is currently addressing the recovery of the Ukrainian economy.
Ukrainian Prime Minister Denis Shmygal is to take part in the roundtable conference on April 12. Ukrainian President Vladimir Zelensky and U.S. Treasury Secretary Janet Yellen are expected to deliver their remarks.
The first ministerial roundtable was held during the WB and IMF spring meeting on April 21, 2022 and the second during its autumn meeting on October 12, 2022.
Speaking at the first meeting, Georgieva estimated Ukraine's monthly needs for financing its budget deficit at $5 billion in 2022. At the second meeting, Zelensky proposed that the global financial community make three urgent steps in support of Ukraine, i.e. set up a "financial Ramstein", ensure economic recovery and assistance to Ukrainians, and create a mechanism to promote investments and guarantee their insurance from risks.
Ukraine's updated 2023 state budget provides for foreign financing to cover the budget deficit in the amount of about $42 billion, or around $3.5 billion a month. Finance Minister Sergei Marchenko said recently that the conclusion of an agreement with the IMF on a four-year Extended Fund Facility (EFF) for $15.6 billion gives reasons to say that the problem of financing the 2023 budget was resolved and priority would now be given to finding funds for recovery. Marchenko described this as one of his key objectives at the WB/IMF Spring Meetings 2023.
Out of the $14 billion verified by the WB along with the Ukrainian government, the European Commission, and the UN as a sum required for Ukraine's quick recovery in 2023, the country's state budget provides for about $3.3 billion, while the rest of the funding should be raised with assistance from foreign partners.