Ukraine’s finance minister cautions about ‘more difficult’ next year
(MENAFN) Ukraine is bracing for a challenging year ahead as financial support from international allies is projected to decrease significantly, according to Finance Minister Sergey Marchenko. In an interview with RBC Ukraine, Marchenko highlighted the looming difficulties for 2025, attributing them to the anticipated reduction in financial aid from Ukraine's Western partners.
This year, Ukraine benefited from a substantial $60 billion aid package from the United States, despite delays in Congress. However, Marchenko warned that similar levels of financial support are unlikely in the coming year, largely contingent on the outcome of the upcoming United States presidential election. “The year 2025 will be more difficult,” he said. “It will be a year of uncertainty, with decisions that may not turn out as expected.”
In preparation for these challenges, Marchenko emphasized the need for Ukraine to be self-reliant while seeking additional financial backing. The Finance Minister outlined a requirement for an extra USD12-15 billion from Western sources in 2025 to cover the country’s budgetary shortfall and sustain its efforts amid ongoing conflict. “We approach our partners and present a solution to cover the deficit of 500 billion hryvnia (USD12.1 billion),” Marchenko explained. “We also anticipate receiving sufficient financial assurances for 2025 to support the budget.”
Ukraine’s financial situation has already shown signs of strain. The country's public debt increased by over USD1 billion in June, pushing its total debt beyond USD152 billion. Additionally, the International Monetary Fund (IMF) revised its GDP growth forecast for Ukraine downward from 3.2 percent to 2.5 percent for this year, citing deteriorating economic sentiment among consumers and businesses amidst the ongoing conflict with Russia.
As Ukraine navigates these economic challenges, the government remains focused on securing necessary funds to maintain stability and address its fiscal needs in the face of an uncertain financial landscape.
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