Increased state budget deficit can be financed without emission – NBU head

KYIV. March 16 (Interfax-Ukraine) – There are still no plans to monetize the state budget deficit in 2023, despite the government’s plans to increase the state budget deficit by UAH 419.3 billion, said Andriy Pyshnyy, the governor of the National Bank of Ukraine (NBU).

“We are determined, and in this we have a common position with our partners from the International Monetary Fund and the Ministry of Finance of Ukraine to prevent the monetization of the budget deficit in 2023. Emission sources should be replaced by those sources that are currently being developed in terms of their availability,” Pyshnyy said at a press briefing on Thursday.

According to him, such sources may be the activation of the domestic borrowing market and the maximization of the potential provided by the liquidity present in the system today, as well as the significant efficiency of the work that the IMF and the Ukrainian government are currently doing to attract international financing and assistance.

“We expect that due to these two sources, as well as those measures that will be carried out by the government and the Ministry of Finance on fiscal consolidation, we will be able to finance the budget, even taking into account those additional costs, without the corresponding emission sources,” Pyshnyy stressed.

“We remain within the framework of those agreements that provide that emission financing will not be needed in 2023. Now we are all working on this,” he summed up.