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06
May
2022

Ukraine in May expects $500 mln grant from US, CAD 1 bln loans from Canada, EUR 150 mln from Germany, EUR 200 mln from Italy, $300 mln from Japan – Finance Minister

KYIV. May 6 (Interfax-Ukraine) – The Ministry of Finance of Ukraine expects in May to receive a number of loans and grants from both partner countries and international financial organizations, but the main instrument that they hope for is special drawing rights (SDR), Finance Minister Serhiy Marchenko said in an interview with Interfax-Ukraine.

"We have high expectations about what we can get from our partners in the near future. This is an additional $500 million grant from the United States, EUR 150 million from Germany, the Italians have agreed a new loan of EUR 200 million. Another 1 billion Canadian dollars from Canada, which has agreed such amount through the IMF Administered Account. We expect these funds in the near future," he said.

Marchenko added that Japan, after negotiations, confirmed an additional loan of $300 million, which is also expected to be received in May.

According to him, among other resources that the Ministry of Finance is counting on this month, is new funding from the Netherlands, $200 million of the first tranche of a $1 billion loan from the International Development Association of the World Bank, another $100 million from the World Bank to cover the costs of payments to internally displaced persons, as well as $60 million to cover social benefits.

"The British, through the World Bank Multi-Donor Trust Fund, confirmed an additional guarantee to what they have already provided in the amount of $500 million. We expect EUR 10 million from each of Latvia and Lithuania, as well as Austria, another $10.5 million from Switzerland, EUR 20.5 million from Denmark. In addition, Poland and Finland are now deciding the amount and mechanism of assistance. Another EUR 20 million from Norway, also through a trust fund. Iceland should provide EUR 470,000 in May," the finance minister said.

He noted that in addition, the EUR opean Investment Bank should re-profile existing projects worth about EUR 1.1 billion, for which the decision of the EUR opean Commission is expected, and a loan from France is possible.

"But the instrument on which we pin our main hopes is special drawing rights. There was a letter from the prime minister to the countries – potential donors which can share SDRs. It was about 10%. Now we are working on the mechanics of this process," the minister said.

According to him, the state budget deficit in April amounted to UAH 89.7 billion compared to UAH 80.6 billion in March. In the income of the general fund of UAH 76.2 billion, grant assistance amounted to UAH 22 billion.

Commenting on the $5 billion monthly support and funding the deficit in April announced together with IMF, Marchenko acknowledged that insufficient funds were received, but the problem, as in March, was eliminated through liquidity management.