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the European Commission with colleagues involved in solving such issues.”
6.1.3 Budget dynamics - funding
Ukraine needs immediate funding of up to $65B. Ukraine has indicated it needs up to $65B this year to meet its funding requirements, billions more than its allies have so far been able to pledge, reported Bloomberg. This amount includes macro-financial stability assistance for emergency budget funding and logistic infrastructure projects. The figure, which excludes defense and security spending, is part of a larger blueprint for the nation’s longer-term reconstruction, which is estimated to exceed $750B and was unveiled at a conference in Lugano, Switzerland.
The NBU has printed another UAH 35B for the government. The National Bank of Ukraine (NBU) bought domestic government bonds from the Ministry of Finance for UAH 35B ($1.1B), reported the state bank. The economy is gradually adapting to the war, and state budget revenues still do not cover even a third of the government's funding needs. Every month, Ukraine spends more than UAH 100B on the needs of the army and the same amount on medical funding, state salaries, and social support. In these circumstances, the lifeline for the country is the National Bank, which has agreed to "print" the hryvnia, directly financing the needs of the state. Currently, the NBU is the largest sponsor of the Ukrainian resistance. As of June 23, the total amount of IGLBs in the NBU portfolio increased to UAH 533.6B.
The EU guarantee supports the EBRD in loans to key Ukraine companies.
The EBRD and the EU have further strengthened their cooperation in helping Ukraine during wartime. The European Commission committed to providing guarantees to support €70M of recent EBRD loans to Ukrainian companies that provide vital services to the country’s real economy. These loans are part of the €1B in funding that the EBRD will invest in Ukraine in 2022. The EBRD, along with donors and partners, has committed €50M in liquidity support to Ukrainian Railways (UZ), and Farmak, the largest Ukrainian pharmaceutical manufacturer. To address the Ukrainian economy’s current needs, the EBRD is prioritizing five areas: trade finance, energy security, vital infrastructure, and food security, which covers the provision of liquidity to farmers and food retailers.
The first stage of EU aid will come to Ukraine in the summer. The first stage of macro-financial assistance from the EU within the framework of the new program for Ukraine will be provided immediately after ratification by the European Parliament and national parliaments, before the summer vacation. According to Executive VP of the European Commission Valdis Dombrovskis, the first stage, worth €1B, should start in the summer, and in total, the program should provide €9B. He drew attention to the fact that, according to IMF estimates, Ukraine's short-term deficit this year will reach $39B.
The United States will announce an additional $800M in aid for Ukraine the White House said on June 30. During the NATO summit, US President Joe Biden said that in the coming days the US will announce further assistance to Ukraine in the amount of $800M. According to the American president, this aid will include "new Western anti-aircraft systems, more artillery and ammunition, artillery radar systems, additional ammunition for HIMARS, and anti-aircraft
33 UKRAINE Country Report XXXX 2018 www.intellinews.com