Monitoring Desk
ISLAMABAD/LONDON: Pictures of devastation in Ukraine following the Russia-Ukraine war have sparked urgent questions about how its reconstruction can be paid but before they can even be answered, Kyiv is seeking billions just to ride out that year.
Ukrainian Prime Minister Denys Shmyhal said at a recent government meeting that after the 30 per cent contraction in its economy in 2022, Ukraine would need $38 billion by the end of the year to cover its budget deficit alone.
“We need these aids for critical costs: funding of salaries and pensions, education and medicine. For economic stability and a successful fight against the enemy, Ukraine needs more help.”
On top of that, Kyiv has said it will need 17 billion dollars this year for urgent energy repairs and for de-mining and rebuilding some of its critical infrastructure.
EU provide billions of dollars
The European Union (EU) is expected to provide the lion’s share of funds, at 18 billion dollars, to cover the budget deficit. United States (US) Treasury Secretary Janet Yellen stepped up calls for increased financial support to Ukraine as the United States readies an additional 10 billion dollars in economic assistance.
It is now pressing for a multibillion-dollars borrowing programme from the International Monetary Fund (IMF), with Prime Minister Denys Shmyhal, saying he hopes to agree to a 15 billion-dollar multi-year programme.
IMF chief Kristalina Georgieva said lending to Ukraine could be “sizeable.” He said that the aid approved a four-month monitoring programme for Ukraine in December to maintain economic stability and promote donor financing, which eventually paved the way towards “a possible full-fledged IMF-funded supported programme.”
