Ukraine has attracted $98.7 billion in external financing since February 2022 - Ministry of Finance
Since February 24, 2022, direct budget support from donor countries and international financial organizations has reached about USD 98.7 billion.
This is reported by the press service of the Ministry of Finance, Censor.NET reports.
What is international funding used for?
"The Government allocates all revenues from partners to social, humanitarian and other priority non-military expenditures of the state budget. External financial assistance cannot be used to cover security and defense expenditures," the Ministry of Finance emphasized.
The funds raised are used for specific expenditures that have been identified with partners or for priority expenditures of the state budget in accordance with the priority order.
Budget support with a specific purpose
The funds raised under the World Bank projects are exclusively earmarked, as agreed by the partners and the Government of Ukraine.
In total, since February 2022, Ukraine has received almost USD 40 billion through World Bank mechanisms. The largest donors are the United States, Japan, and the United Kingdom.
Since the beginning of the full-scale war, the World Bank has launched 7 projects to support key sectors of Ukraine's economy:
- Project "Supporting Public Expenditures for Ensuring Sustainable Public Administration in Ukraine" (PEACE in Ukraine). Reimbursement of expenditures for the payment of pensions, part of social benefits, salaries to doctors, teachers, civil servants (except for security and defense) and employees of the State Emergency Service. The project has attracted up to USD 30 billion.
- Investing in Social Protection for Improved Coverage, Resilience and Efficiency (INSPIRE) project. Social assistance to vulnerable populations and increasing the effectiveness of social support programs (including IDPs). The project received about USD 1.2 billion.
- "Emergency project for providing inclusive support for the restoration of agriculture in Ukraine" (ARISE). Restoration and support of the agricultural sector (in particular, expanding access to the 5-7-9 lending program for agricultural producers). USD 500 million was raised.
- "Strengthening the Healthcare System and Saving Lives" (HEAL Ukraine). Improving access to healthcare, meeting urgent healthcare needs, and providing financial protection in emergencies. The project has already received more than $124.5 million.
- "Housing Opportunities for People's Empowerment" (HOPE). Small and medium-sized repairs of partially damaged private and multi-apartment residential buildings. About USD 150 million has already been attracted.
- Two Development Policy Loans (DPL/DPO). Supporting Ukraine's efforts to implement its structural reform agenda and providing critical financing. The total disbursement is USD 3 billion.
General budgetary support
Priority expenditures of the state budget without reference to specific areas include funds from the EU (38 billion euros), funds from the IMF (10.2 billion US dollars), and budget support from the Government of Canada (over 5 billion US dollars).
These include social and humanitarian expenditures that are not covered by earmarked budget support. They also include support for the energy sector, public debt service, economic recovery, etc.
