Ukraine attracts $42 bln in foreign financial aid to cover state budget needs in 2023

MOSCOW. Dec 27 (Interfax) - Ukraine attracted $42 billion in external financing just to cover budgetary needs and conducted a record amount of borrowing on the domestic market in 2023, Ukrainian media reported citing Ukrainian Finance Minister Sergei Marchenko.

"This made it possible to finance all necessary expenses, primarily for the security and defense forces," he said.

A video of his statements was published on YouTube.

Marchenko noted that Ukraine has fulfilled its obligations under the extended financing programs with the IMF and macro-financial assistance with the EU. In general, he believes that the implementation of the 2023 state budget was much calmer compared to the situation the previous year.

"Now, less worrying is not even 2024, but 2025," the Finance Minister said, commenting on the forecast for the implementation of budget plans next year.

He expressed his conviction that Kiev needs to remain in the IMF program and obtain support from the European Union via the Ukraine Facility mechanism, which will solve 50% of the problems of 2025, which is associated with great uncertainty, due in part to elections in partner countries.

According to Marchenko, Ukraine must take measures to reduce dependence on external partners.

"The key is the coordination of the government team in the broad sense of the word," he said.

Earlier, Marchenko said that Ukraine's need for external financing in 2024 had been reduced from an initial $41 billion to $37.3 billion thanks to measures to maximize state budget revenues, activate the domestic borrowing market, and reduce all state budget capital expenditures.

In 2022, Ukraine attracted $32.1 billion in external financing.