Ukraine closes 2025 funding gap, eyes 2026 stability

Business

25 April 2025, 10:25 AM

Ukraine's external financing needs for 2025 have been fully secured, Finance Minister Serhii Marchenko said on April 24.

He made this statement shile speaking at the G7 finance track meeting in Washington D.C., part of the International Monetary Fund (IMF) and World Bank Group (WBG) Spring Meetings.

“This year, budget support from our key partners totals $16.8 billion," Marchenko said.

"Thanks to our coordinated cooperation, all external financing needs for 2025 are fully covered,”

At the same time, he stressed that Ukraine must remain prepared for any potential developments.

He noted that international support will remain critically important in 2026 to preserve financial stability, restore the economy, and attract foreign investment.

Marchenko also highlighted the strengthening of Ukraine’s financial system. Due to increased domestic revenues and consistent funding, the country is gradually reducing its budget deficit.

In Q1 2025, general fund revenues grew by $1 billion compared to the same period in 2024.

Additionally, through the issuance of government bonds, Ukraine has already raised $3 billion in 2025. The budget deficit is projected to shrink to 19.4% of GDP in 2025, down from 24% in 2024.

Marchenko reported stable inflows under the $50 billion Extraordinary Revenue Acceleration for Ukraine (ERA) program, financed by proceeds from frozen Russian assets. Ukraine has already signed relevant agreements with the G7 and the European Commission.

The full confiscation of Russia’s sovereign assets has to be the next step, he said.

Earlier reports indicated that between April 15 and April 23, 2025, the Ukrainian government exchanged restructuring proposals with holders of GDP warrants.

However, no agreement has yet been reached between the two sides.

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