Ukraine received €1 billion grant from Germany, - Ministry of Finance
A grant from the Federal Republic of Germany in the amount of EUR 1 billion has been sent to the state budget of Ukraine
As Censor.NET informs, this was reported by the Ministry of Finance of Ukraine.
"The grant funds were transferred to the state budget through a special administrative account opened by the International Monetary Fund to direct the money of donor countries to aid Ukraine," the agency clarified in a press release.
According to it, the proceeds will be used to finance priority budget expenditures during martial law.
In general, since the beginning of the war, Ukraine has already received EUR 1.3 billion from Germany to support the financial and budgetary system, the Ministry of Finance noted.
Earlier this week, the Ministry of Finance announced the receipt of a EUR446.8 million loan from the World Bank (WB) with a guarantee of EUR424.6 million from Great Britain, a US grant of $1.3 billion through the WB's multi-donor account, and a loan from Japan in the amount equivalent to about $500 million.
In April 2022, the IMF decided to create an administrative account for crediting funds in the form of part of the Special Drawing Rights (SDR) from donor countries in favor of Ukraine. All funds raised using this account must be directed to support the financial stability of Ukraine in the form of grants or credits (loans).
Germany became the second country to use this tool, after Canada, which allocated a soft loan of 1 billion Canadian dollars (equivalent to $773 million) in the first half of June.
The government estimates the monthly needs of the budget to finance the deficit at $5 billion. Finance Minister Serhiy Marchenko previously predicted that in June international financial support for Ukraine would increase to $4.8 billion from $1.5 billion in May, and thanks to the funds that arrived at the end of the month, it turned out to be close to this amount. According to the head of the Ministry of Finance, in July the government expects to maintain the same significant amount of external financing as in June. In particular, the receipt of the second tranche of a grant from the US for approximately $1.3 billion and an EU loan for EUR1 billion is expected.
