The 2023 budget deficit is planned to be financed by foreign partners

What happened? The government plans to finance the budget deficit for the year 2023 mainly at the expense of foreign partners.

Source. Denys Shmyhal, the Prime Minister of Ukraine, Interfax-Ukraine reports.

Details. According to the government's estimate, the annual deficit is projected to be at the level of $38 billion. $18 billion of aid is planned to be received from the USA, and $12 billion is expected from the International Monetary Fund (IMF) and the EU. In particular, funds are planned to be raised through war bonds.

Mr. Shmyhal reminded that the IMF had agreed to allocate another $1.4 billion to Ukraine in emergency financing.

“We agreed to continue cooperation with the IMF more actively this year in order to have an IMF programme next year. The programme, obviously, will be special for Ukraine, since we have special circumstances that have not emerged on the European continent for the last 80 years,” the politician commented.

As for the current year, Ukraine is to receive $4.5 billion from the United States – $1.5 billion each month. Another $8 billion of the EU macro-financial assistance is also expected, namely:

• $5 billion in the form of a long-term preferential loan for 18 years is expected this month;
• $3 billion, possibly in the form of a grant – in late October–November.

Next year, it is planned to receive EUR 1 billion from the EU and $1.5 billion from the USA each month, as well as a total of $12 billion from the IMF for the year. War bonds remain an additional “safety cushion” – they are used in emergency cases or to finance gaps in the receipt of international aid.