UK to provide Ukraine with $500 million loan guarantees

22 April, 07:29 PM
UK Finance Minister Rishi Sunak and Minister of Finance of Ukraine Serhii 
Marchenko (Photo:Sergii Marchenko / Facebook)

UK Finance Minister Rishi Sunak and Minister of Finance of Ukraine Serhii Marchenko (Photo:Sergii Marchenko / Facebook)

The United Kingdom will provide financial assistance to Ukraine in the amount of $500 million in loan guarantees to mitigate the economic effects of the Russian invasion, Minister of Finance of Ukraine Serhii Marchenko said on Facebook on April 21.

“The United Kingdom is an example for the entire civilized world,” Ukraine’s finance minister wrote.

“Their support is always uncompromising and very timely. I personally thanked the Chancellor of the Exchequer Rishi Sunak for all the efforts and support for Ukraine and their decision to provide $500 million in loan guarantees to Ukraine, in order to mitigate the economic effects of Russian crimes.”

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He added that the UK is ready to join in attracting other countries and financial institutions to two new financial support mechanisms for Ukraine - both a World Bank Trust Fund, and a special account for receiving previously allocated Special Drawing Rights from the International Monetary Fund.

Yesterday, U.S. President Joe Biden announced that Washington would pro-vide Ukraine with another $500 million in direct economic assistance. As a result, the total amount of U.S. economic assistance to Ukraine since the beginning of the full-scale Russian invasion will reach $1 billion, the head of the White House said.

Marchenko said that state budget expenditures exceeded revenues by about$2.7 billion in March. Ukraine expects the gap to increase to $5-7 billion by a month in April and May, due to the war.

International organizations and the governments of a number of countries have expressed their readiness to provide budget financing in the amount of $10 billion, of which $3.4 billion was received by Ukraine in March.

According to a forecast by the IMF, Ukraine’s state budget deficit in 2022 will increase to 17.8% of GDP, from 4% of GDP in 2021, as a result of the Russian invasion.

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