Parliamentary taxation chairman expresses concern over shortfall in external funding

External financing for Ukraine has fallen short of the country’s end-of-year needs, announced the parliamentary chairman of the taxation committee, Danylo Hetmantsev, in a Telegram post on Dec. 2.

Hetmantsev noted that as 2023 comes to a close, Ukraine had received approximately $37.43 billion of external financing in the current fiscal year, including an inflow of about $2 billion in November. However, initial estimates for necessary funding for the government placed Ukraine’s needs at $42.3 billion.

“Following budget adjustments in October, this figure rose to approximately $44.5 billion,” the MP explained.

The National Bank of Ukraine had assessed the total need at around $45 billion, averaging $3.7 billion per month. However, with 11 months' results now available, actual receipts amount to $3.2 billion. With one month remaining in the fiscal year, efforts are underway to maximize external financial assistance.”

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Hetmantsev noted that while Ukraine maintained a lead or adhered to the external aid schedule for the majority of the year, the pace of acquisitions tapered towards its end.

He also noted that the December figures are poised to surpass November's, as the anticipated grant support from the United States and the upcoming tranche from the International Monetary Fund are expected in the last months of the year.

The MP emphasized that December would be pivotal for securing external financing for the next year. To cover potential gaps in December, he advised the government to intensify the placement of government bonds and strengthen liquidity management in the unified treasury account. Hetmantsev concluded by stating that the committee continues to work on internal revenue plans and awaits positive developments from Washington and Brussels.

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