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2.2 Ukraine’s Marshall Plan proposal
Ukraine has presented a $750bn rebuilding plan. In Lugano, Switzerland, Ukraine introduced a post-war recovery plan with a cost of more than $750bn on July 4, which will include 850 projects to rebuild the country, announced the Lugano conference’s website.
The program is planned for 10 years, from 2023 to 2032, and will take place in two phases. The first will last from 2023-2025, in which most of the planned projects, 580, are to be implemented. These three years will cost more than $350bn.
The second phase will contain fewer projects but require more financing - more than $400bn. During these ten years, the plan stipulates that the Ukrainian economy will grow by 7% annually. The most expensive programs are:
· the restoration and modernization of housing and the infrastructure in all regions will require $150-$250bn;
· the expansion and integration of logistics with the EU will cost $120-$150bn;
· providing for energy independence and the green conversion will cost $150bn;
· macro-financial stability will require $60–$80bn;
· ensuring competitive access to capital requires $75bn;
· developing value-added sectors of the economy will cost
$50bn; and
· spending in the defence sector will total $50bn.
2.3 Ukrainian officials are exploring the possibility of debt restructuring
Ukrainian officials are exploring the possibility of debt restructuring as the war-ravaged country’s funding options are at risk of running out, according to three people familiar with the discussions, Bloomberg reported on July 5.
Multiple scenarios are being considered and no decision is expected until later in the summer, according to two of the people, all of whom asked not to be identified because the talks are private. Ukraine has time until at least Sept. 1, when it faces a $1.4bn redemption and interest payments, according to Bloomberg calculations.
Policy makers in Kyiv are struggling to keep the budget running as the country’s military fends off Russia’s invasion, which has destroyed cities, brought the nation’s key grain exports to a standstill, and displaced more than 10mn people.
The International Monetary Fund is offering advice and analysis about Ukraine’s financial and debt situation, according to two of the people.
7 UKRAINE Country Report XXXX 2018 www.intellinews.com