In January-February, the general fund of the state budget of Ukraine received about $1.2 billion of external financing. Grants provided on a non-refundable basis accounted for 75% of the total amount of financial assistance.
Among the donors were Japan – $901 million (concessional financing and grants), Norway – $295 million (grant) and Spain – $3 million (concessional financing).
All funds over the first two months of 2024 were disbursed through World Bank projects.
Japan has provided a grant of $465 million under the project Public Expenditures for Administrative Capacity Endurance (PEACE in Ukraine), $297 million in concessional funds under the project Integrated Social Protection Inclusion and Resilience (INSPIRE), $89.8 million grant through the Agriculture Recovery Inclusive Support Emergency (ARISE) and $49.4 million grant through the Housing Repair for People’s Empowerment (HOPE) project.
Norway has allocated grant funding in the amount of $295 million under the PEACE in Ukraine.
$3-million loan under Spain’s guarantee was attracted through the project Health Enhancement And Lifesaving (HEAL Ukraine).
The international assistance is aimed at financing the priority social expenditures of the State Budget, in particular, salaries for employees of the education, healthcare areas and State Emergency Service, humanitarian needs, old-age social payments and social protection of the population.
In March, the state budget of Ukraine is expected to receive financial assistance from the European Union, Japan and the United Kingdom, as well as the IMF, subject to the successful third review of the cooperation program, which must be approved by the IMF Executive Board.
Funds from international donors remain an essential source of financing for the state budget of Ukraine in the context of a full-scale war. The Ministry of Finance of Ukraine is committed to accountability and efficient use of financial aid from its partners. Thus, the Ministry of Finance, in cooperation with the World Bank and other partners, ensures transparency in the attraction and use of external financing. (Government portal/Business World Magazine)
