Ukraine ends 2024 with 'financial stability' based on funds from foreign donors - PM

MOSCOW. Dec 24 (Interfax) - Ukraine ends the year 2024 with financial stability, Ukrainian Prime Minister Denis Shmygal said.

"We end the year 2024 with financial stability. We are fully financing our defense forces with taxes, dues, and domestic loans. We are covering civilian expenses thanks to our partners," Ukrainian media said, citing Shmygal's statement at a government meeting on Tuesday.

Ukraine received over 16 billion euros from the European Union under the Ukraine Facility program, in addition to almost $5.4 billion under the program of cooperation with the IMF, he said.

"The United States, the World Bank, Japan, Canada and other partners have also provided weighty support. Direct budget support alone will near $41 billion this year. This enables us to fully meet our obligations," Shmygal said.

The budget disbursed over UAH510 billion for social security, UAH140 billion for state medical guarantees, and UAH163 billion for transfers to local budgets in the first 11 months of this year, he said.

"We have a clear idea where the funds will come from next year. We are expecting to draw over $38 billion in external funding for crucial non-military budget expenses," Shmygal said.

The Ukrainian budget had received $1 billion as a tranche under the World Bank's Second Development Policy Loan (DPL), Ukrainian media said, citing the Finance Ministry.

"The financing consists of $567 million guaranteed by the Japanese government under the ADVANCE Ukraine Trust Fund and $483 million guaranteed by the British government," the press release said.

The funds raised will bolster the potential for economic development and finance priority social and humanitarian expenditures of the Ukrainian state budget, it said.

The purpose of the DPL project is to support reforms in Ukraine, and tranches are linked to the achievement of program targets, the ministry said.

According to the ministry, the total financing of the state budget's general fund in 2024 reached $53.4 billion as of December 19, including $15.7 billion generated by the placement of domestic government bonds, and the rest in external financing. The funds included grants totaling $11.1 billion.

In general, the financing from international partners reached $111.3 billion in 2022-2024, the ministry said.

This week, Ukraine also received $1.1 billion as the seventh tranche of the IMF Extended Fund Facility (EFF) arrangement.