The promises of aid to Ukraine by the United States and the European Union promise to be “enough” by 2023, IMF Managing Director Kristalina Georgieva estimated in an interview with AFP.
“Yes, we should approach 2023 with enough financial support for Ukraine,” Kristalina Georgieva said in Brussels on the sidelines of a conference organized by the European Commission. “Looking ahead to next year, the needs are great, but not completely out of step with the situation so far,” she continued, adding, however, that the outlook remains uncertain.
As Ukraine’s economy is devastated by eight months of Russian offensive, President Volodymyr Zelenksy has called on international lenders to fill his country’s $38 billion budget hole by 2023. The IMF has assessed monthly financing needs of Ukraine by 2023 by three or four billion euros, or even five billion if the destruction linked to the war worsens.
Westerners stress the importance of keeping this war-torn country on its feet. German Chancellor Olaf Scholz called for a “new Marshall Plan for the 21st century” at a conference on Ukraine in Berlin earlier this week.
“The world mobilizes”
But the ability of Ukraine’s economy to survive unless Kyiv’s allies act quickly is uncertain. The United States and the European Union have pledged funds to keep Ukraine’s budget afloat next year. “The EU has committed 18 billion euros. That’s 1.5 billion a month for next year. The US has committed 18 billion dollars, or 1.5 billion a month,” the IMF managing director said. “And of course, at the IMF we are working on a program for Ukraine … the world has mobilized,” he said, stressing “the incredible resilience of the Ukrainian people.” These compromises, however, come with question marks.
The European Union, for example, has yet to disburse the full €9 billion pledged for this year, and member states disagree on what form such aid, grants or loans, should take. Aid fatigue is also being felt in Washington, where House Republican leader Kevin McCarthy has warned that his party will no longer write a “blank check” to Ukraine. House of Representatives seats in the November 8 election.
Ukraine received $35 billion in grants and loans in 2022, “most of which has already been disbursed,” Kristalina Georgieva said. “The Ukrainian government has done an amazing job of managing the economy in such a way that certain sectors are growing again,” she said. For Kristalina Georgieva, the courage shown by the Ukrainians “has made Ukraine a better country”, which is undergoing profound changes, such as accelerated technological advances. The IMF forecasts a recession of 35% of GDP for Ukraine in 2022 and inflation of 20%.
Source: BFM TV
