Ukraine raises external budget funding request to $35 billion for next year
Ukraine’s Ministry of Finance announced it needs $35 billion in external funding for next year’s budget, up from the $22.7 billion estimated by the IMF’s EFF program, according to Deputy Finance Minister Olha Zykova.
She noted that the increased funding need now represents about 18.2% of Ukraine’s GDP and expects the IMF to revise its forecast during the fifth EFF program review in September.
Olha warned that the gap could widen by $12 billion to $15 billion due to intensified military needs covered solely through internal resources.
Prime Minister Denys Shmyhal earlier stated that Ukraine will need at least $38 billion in external financing for 2025, matching this year’s planned amount.
The National Bank of Ukraine estimates international partners will provide about $38 billion in concessional loans and grants this year and no less than $31 billion next year.
U.S. Treasury Secretary Janet Yellen suggested in late May that G7 countries might offer Ukraine a multibillion-dollar loan, partly funded by interest on $300 billion in frozen Russian assets.
By early June, U.S. Assistant Treasury Secretary Brent Neiman indicated progress on this aid, with discussions about a $50 billion loan.
On June 13, Italian Prime Minister Giorgia Meloni confirmed a G7 political agreement to provide around $50 billion in support by year-end.
EU Commissioner for Economy Paolo Gentiloni added on July 26 that a framework agreement for a €50 billion loan could be finalized by October.
Since the war began, Ukraine has received $98.04 billion in external financing, including $31.10 billion in 2022, $42.48 billion in 2023, and $24.47 billion this year.
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