Page 36 - Ukraine OUTLOOK 2024

87% drop compared to the same period in 2022 and the lowest amount since January 2022.
The Ukrainian state budget received $42.6bn of external financing in 2023.
The largest donors of financial aid in 2023, according to MinFin, were:
· European Union - $19.7bn (concessional financing);
· United States of America - $11bn (grants);
· International Monetary Fund - $4.5bn (concessional financing);
· Japan - $3.6bn (concessional financing and grants);
· Canada - $1.8bn (concessional financing);
· United Kingdom - $1bn (guarantee);
· World Bank - $652mn (concessional financing).
The European Union has provided Ukraine with the largest amount of financial assistance under the large-scale Macro-Financial Assistance (MFA+) for 2023. The total amount of concessional funds reached €18bn. The loan has a maturity of 35 years, and the EU countries will compensate for interest and other debt service payments instead of Ukraine.
The support of the United States was extremely significant, including through grants, which allowed Kyiv not to increase the debt burden on the State Budget. Ukraine received $11bn through the World Bank's Public Expenditures for Administrative Capacity Endurance (PEACE in Ukraine) project.
In March 2023, the IMF Executive Board made a historic decision to launch a 4-year Extended Fund Facility (EFF) arrangement for Ukraine in times of war. The total amount of the programme is about $15.6bn, of which Ukraine has received about $4.5bn this year.
The need for external financing for the next year reaches $37.3bn, which has been verified by the IMF.
Japan has provided Ukraine with funds under five World Bank projects: $1.5bn as a Development Policy Loan; $1bn loan – PEACE in Ukraine; $900mn loan under Investing in Social Protection for Inclusion, Resilience and Efficiency (INSPIRE); $180mn grant under Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE) and a $52.4mn grant – Housing Repair for People's Empowerment Project (HOPE).
Canada has allocated CAD2.4bn to the State Budget of Ukraine through the IMF's Administrated Account mechanism. The concessional financing has been arranged for 10 years, with an interest rate of 1.5% per annum.
The UK guarantees are part of additional financing under the World Bank's PEACE in Ukraine project. The maturity is 19 years with a 5-year grace period.
"In the 9 months of the IMF programme's operation, we have already successfully passed two reviews. Ukraine has performed 17 IMF structural benchmarks, 11 of which relate to fiscal policy and the financial sector: in particular, legislative initiatives to improve the Budget Code, strengthen tax policy and manage public debt. We continue to work on the implementation of the jointly identified reforms and hope that this will result in further attraction of
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