KIEV: Ukraine will require at least 39.5 billion U.S. dollars in external financing next year to keep its economy afloat, the Interfax-Ukraine news agency reported Friday, citing a recent International Monetary Fund (IMF) projection.
“Staff analysis suggests that external fiscal financing needs would be at least 39.5 billion dollars in a central scenario,” the IMF said. Under a pessimistic scenario, which envisages that Ukraine’s gross domestic product will decline by 12.5 percent, the country’s foreign financing needs will be around 57 billion dollars, the IMF said. According to Ukrainian Finance Minister Serhiy Marchenko, external financing of Ukraine’s state budget is set to reach 30 billion dollars this year. The Ukrainian economy, which was severely hit by the Russia-Ukraine conflict, is expected to shrink by between 32-35 percent this year after a 3.4 percent growth in 2021.