14 Feb 2024 12:18

Ukraine earned support - IMF managing director

MOSCOW. Feb 14 (Interfax) - Ukraine still needs $42-billion external financing in 2024, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, adding that she hoped for a pragmatic decision of the U.S. Congress to contribute to this assistance.

"Ukraine earned the support of the international community with very prudent actions domestically. They collect 36% to GDP in taxes. I don't know many countries that do that even without the conflict. They brought inflation down from double digits, from 27% to 5%, they have restarted the prospects for growth, the growth is now 4.5%," Ukrainian media quoted Georgieva as telling CNBS in an interview.

If partners deny such support, there will be a risk of losing all the progress achieved, Georgieva said. She hailed the EU's unanimous decision made in early February to allocate a 50-billion-euro assistance package to Ukraine for 2024-2027, and noted the importance of such support from the United States.

As reported, Ukraine's 2024 state budget includes external financing in the amount of $37 billion. Of this, 18 billion euros are expected from the EU, alongside up to $10 billion from the United States. The aid approval has been faltering at the Congress since last fall. On February 13, the Senate passed a bill allocating about $60 billion to Ukraine, of which direct budget support amounts to $7.85 billion. Now the bill needs approval by the House of Representatives, which is still a big if.

Additionally, the IMF Extended Fund Facility (EFF), approved last year, envisages the allotment of $5.4 billion to the Ukrainian budget this year. The overall size of the program is $15.6 billion, including $4.5 billion allotted last year. The program is part of the international assistance package, which nears $122 billion, so problems with Kiev's funding by other partners may endanger IMF allotments.