IMF program will help Ukraine get through 2023, NBU governor says
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“This need is a record level – $38 billion,” Pyshny outlined how much external financial aid Ukraine will need in 2023, speaking at the EBA Global Outlook: Victory Mode event.
“Is this number big? It’s fantastic.”
He added that this aid will replenish NBU’s gold and forex reserves, and will allow the regulator to ease administrative restrictions as well as “give some oxygen to business.”
According to Pyshny, the NBU is counting on non-equity financing of the state budget deficit in 2023.
“$38 billion should be financed through the potential of the domestic debt obligations and through the support of international financial partners,” he said.
Read also: NBU keeps key policy rate at 25%
“This requires a completely different format of interaction with the IMF, and a completely different format of cooperation and understanding of the common goal with the Ministry of Finance. You will see the review – the (interest) rates are rising, as Ukrainian foreign loans are becoming more attractive (to creditors).”
Read also: IMF working on providing support for Ukraine, says IMF chief
On Jan. 26, Bloomberg reported that the IMF is considering providing Ukraine with an assistance package, worth up to $16 billion.
Finance Minister of Ukraine Serhiy Marchenko said that Ukraine hopes to start negotiations with the IMF on a full-fledged financing program in Q2 2023.
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