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Ukraine’s finance minister issues caution about ‘more difficult’ 2025
(MENAFN) Ukraine is bracing for a challenging 2025, with Finance Minister Sergey Marchenko warning that the country will likely face increased financial difficulties as support from international donors is expected to diminish. In an interview with RBC Ukraine on Tuesday, Marchenko highlighted that while Ukraine received a substantial USD60 billion aid package from the United States this year, future financial support remains uncertain.
The aid Ukraine received in 2023 was crucial, particularly as it came amidst delays in Congress and widespread debate. However, Marchenko pointed out that the continuation of such aid is closely tied to the outcome of the upcoming United States presidential election later this year. This political uncertainty in the United States could significantly impact the level of financial assistance Ukraine will receive moving forward.
“The year 2025 will be more difficult. This is a year of uncertainty, a year of decisions that may not work out,” Marchenko cautioned. He emphasized that Ukraine must prepare for potentially tougher times ahead and should be ready to make difficult decisions to manage its financial situation. Despite the challenges, Marchenko stressed that Ukraine will need additional financial support from its Western partners to bridge its budgetary gaps.
Marchenko revealed that Ukraine anticipates needing an extra USD12-15 billion from international donors in 2025 to cover a projected deficit of 500 billion hryvnia (approximately USD12.1 billion). This additional buffer would be crucial for Ukraine to sustain its budget and continue its efforts amidst the ongoing conflict with Russia.
The Ukrainian Finance Ministry recently reported a significant increase in public debt, which surged by over USD1 billion in June, pushing the total debt volume to more than USD152 billion. Furthermore, the International Monetary Fund (IMF) has downgraded its forecast for Ukraine’s gross domestic product (GDP) growth this year, reducing it from 3.2 percent to 2.5 percent. The revision reflects deteriorating consumer and business sentiment, influenced by the prolonged conflict with Russia.
As Ukraine navigates these economic challenges, the need for stable and sustained international financial support becomes ever more critical.
The aid Ukraine received in 2023 was crucial, particularly as it came amidst delays in Congress and widespread debate. However, Marchenko pointed out that the continuation of such aid is closely tied to the outcome of the upcoming United States presidential election later this year. This political uncertainty in the United States could significantly impact the level of financial assistance Ukraine will receive moving forward.
“The year 2025 will be more difficult. This is a year of uncertainty, a year of decisions that may not work out,” Marchenko cautioned. He emphasized that Ukraine must prepare for potentially tougher times ahead and should be ready to make difficult decisions to manage its financial situation. Despite the challenges, Marchenko stressed that Ukraine will need additional financial support from its Western partners to bridge its budgetary gaps.
Marchenko revealed that Ukraine anticipates needing an extra USD12-15 billion from international donors in 2025 to cover a projected deficit of 500 billion hryvnia (approximately USD12.1 billion). This additional buffer would be crucial for Ukraine to sustain its budget and continue its efforts amidst the ongoing conflict with Russia.
The Ukrainian Finance Ministry recently reported a significant increase in public debt, which surged by over USD1 billion in June, pushing the total debt volume to more than USD152 billion. Furthermore, the International Monetary Fund (IMF) has downgraded its forecast for Ukraine’s gross domestic product (GDP) growth this year, reducing it from 3.2 percent to 2.5 percent. The revision reflects deteriorating consumer and business sentiment, influenced by the prolonged conflict with Russia.
As Ukraine navigates these economic challenges, the need for stable and sustained international financial support becomes ever more critical.
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