IMF program will help Ukraine get through 2023, NBU governor says

2 February, 10:24 PM
Andriy Pyshnyy, NBU Governor (Photo:NV)

Andriy Pyshnyy, NBU Governor (Photo:NV)

Besides direct financing from the International Monetary Fund (IMF), the program IMF signed with Ukraine in December 2022 will open a donor platform that will fill Kyiv’s need for additional financing for 2023, the Governor of the National Bank of Ukraine (NBU), Andriy Pyshny, said on Feb. 2.

“This need is a record level – $38 billion,” Pyshny outlined how much external financial aid Ukraine will need in 2023, speaking at the EBA Global Outlook: Victory Mode event.

“Is this number big? It’s fantastic.”

He added that this aid will replenish NBU’s gold and forex reserves, and will allow the regulator to ease administrative restrictions as well as “give some oxygen to business.”

Video of day

According to Pyshny, the NBU is counting on non-equity financing of the state budget deficit in 2023.

“$38 billion should be financed through the potential of the domestic debt obligations and through the support of international financial partners,” he said.

“This requires a completely different format of interaction with the IMF, and a completely different format of cooperation and understanding of the common goal with the Ministry of Finance. You will see the review – the (interest) rates are rising, as Ukrainian foreign loans are becoming more attractive (to creditors).”

On Jan. 26, Bloomberg reported that the IMF is considering providing Ukraine with an assistance package, worth up to $16 billion.

Finance Minister of Ukraine Serhiy Marchenko said that Ukraine hopes to start negotiations with the IMF on a full-fledged financing program in Q2 2023.

Follow us on Twitter, Facebook and Google News

Ukraine Today
Fresh daily newsletter covering the top headlines and developments in Ukraine
Daily at 9am EST
Show more news