In the first quarter, Ukraine will receive almost $10.2 billion in external financing, including a record $9 billion in March. The head of the Tax Committee of the Russian Federation, Danilo Getmantsev, wrote about this in his telegram channel.
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Receipts in March
- $4.88 billion from the EU (Ukraine Facility) $1.5 billion from the World Bank (Development) policy loan, DPL) $1.47 billion from Canada (to the IMF administrative account) $0.88 billion fourth tranche from the IMF (EFF) $0.23 billion from Japan (World Bank project to support agricultural recovery).
“Based on expected receipts in April-May, primarily from the EU (1.5 billion euros of the 2nd tranche in April, subject to certain conditions being met, and 1.9 billion euros of unconditional funding in May after the legal entry into force of the Ukraine Facility), Ukraine is guaranteed to cover the lion’s share of the need for external budget financing for the first half of the year,” wrote Getmantsev.
Where will the funds be spent?
These funds will support priority non-military budget expenditures and international reserves.
What to expect for Ukraine before the end of 2024
Continuation of restructuring of commercial external debt in the first half of the year (this will save $4.5 billion on debt payments included in the perimeter of the 2024 budget).
Receipts of the 3rd and 4th tranches for the Ukrainian Facility (in the 3rd and 4th quarter, respectively, in case of fulfillment of the program conditions and a positive assessment by the EU). I’m not writing the amount yet, it may be a matter of negotiation.
5-7 tranches under the IMF program ($2.3 billion in July, $2.1 billion each in September and December if program reviews are approved).
Read: The state budget of Ukraine received about $880 million from the IMF
“It is clear that without American assistance in the amount of $10 billion, it will be difficult for us to get through the second half of the year. There are reasonable hopes that after the approval of the permanent US budget until September 30, 2024, the House of Representatives of Congress will return to voting on an aid package for Ukraine in April.” Receipt of benefits remains the base scenario for this year,” the head of the Committee clarified.
Frozen assets
Ukraine is counting on a final EU decision in the near future on the use of income from frozen sovereign Russian assets (for now according to the latest initiatives, 90% of the tranche of 3 billion euros in 2024 will go to the Peace Fund for military assistance) + more detailed discussions about the prospects for using such assets for the needs of Ukraine, including for the renewal and financing of the budget.
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