Ukraine's finance minister cautions that 2025 will be 'more difficult'
Kiev anticipates challenges and unpredictability in the coming year due to concerns that foreign assistance may decrease, according to Sergey Marchenko. Read Full Article at RT.com
TroibNews 
In 2025, Ukraine may experience heightened uncertainty and obstacles as the level of financial support from its overseas sponsors is anticipated to decrease further, says Finance Minister Sergey Marchenko.
Depending on aid from its Western allies, Ukraine was bolstered by a $60-billion aid package from the US this year, despite prolonged delays in Congress. However, next year's financial support is not guaranteed to follow the same pattern, since it significantly hinges on the upcoming US presidential election, according to an interview Marchenko had with RBC Ukraine on Tuesday.
“The year 2025 will be more difficult. This is a year of uncertainty, a year of decisions that may not work out,” said the minister.
Marchenko highlighted that Ukraine is poised to tackle tough decisions and should be self-reliant. Nonetheless, for Kiev to sustain its needs and continue its efforts, it would require an additional financial "buffer" amounting to $12-15 billion from Western sources in 2025.
“We go to our partners and say: there’s a deficit of 500 billion hryvnia ($12.1 billion) and there is a solution on how to cover it,” he explained. “But we also expect that for 2025 you will give us sufficient financial assurances so we can finance the budget.”
The Ukrainian Finance Ministry reported that the nation’s public debt had escalated by more than $1 billion in June alone, pushing the total debt to over $152 billion.
Earlier, the International Monetary Fund adjusted its growth forecast for Ukraine’s GDP, lowering it from 3.2% to 2.5% this year, as sentiment among consumers and businesses dampened amid ongoing conflicts.
Recently, Fitch, a US-based credit ratings agency, placed Ukraine into a default zone due to its $20-billion debt. According to Fitch, Ukraine has begun a process akin to a default and projects that the national government debt will reach 92% of the GDP this year.
James del Carmen for TROIB News
Depending on aid from its Western allies, Ukraine was bolstered by a $60-billion aid package from the US this year, despite prolonged delays in Congress. However, next year's financial support is not guaranteed to follow the same pattern, since it significantly hinges on the upcoming US presidential election, according to an interview Marchenko had with RBC Ukraine on Tuesday.
“The year 2025 will be more difficult. This is a year of uncertainty, a year of decisions that may not work out,” said the minister.
Marchenko highlighted that Ukraine is poised to tackle tough decisions and should be self-reliant. Nonetheless, for Kiev to sustain its needs and continue its efforts, it would require an additional financial "buffer" amounting to $12-15 billion from Western sources in 2025.
“We go to our partners and say: there’s a deficit of 500 billion hryvnia ($12.1 billion) and there is a solution on how to cover it,” he explained. “But we also expect that for 2025 you will give us sufficient financial assurances so we can finance the budget.”
The Ukrainian Finance Ministry reported that the nation’s public debt had escalated by more than $1 billion in June alone, pushing the total debt to over $152 billion.
Earlier, the International Monetary Fund adjusted its growth forecast for Ukraine’s GDP, lowering it from 3.2% to 2.5% this year, as sentiment among consumers and businesses dampened amid ongoing conflicts.
Recently, Fitch, a US-based credit ratings agency, placed Ukraine into a default zone due to its $20-billion debt. According to Fitch, Ukraine has begun a process akin to a default and projects that the national government debt will reach 92% of the GDP this year.
James del Carmen for TROIB News
