WSJ: Ukraine needs $5 billion monthly to keep its economy afloat

WORLD  13 August 2022 - 10:39

Ukraine's monthly budget deficit is about $5 billion. 

Due to this, the country has difficulties with the fulfilment of social obligations and the financing of hostilities, The Wall Street Journal reports.

A total of 60% of the entire budget is spent on conflict-related spending. At the same time, tax revenues cover only 40% of government spending. GDP is expected to fall by 30% by the end of the year.

The publication clarifies that Kyiv plans to compensate for the costs through external assistance. But out of the $9 billion package of macro-financial assistance promised by the EU countries, the country has so far received only $1 billion. Another source of budget replenishment could be the emission of money, but it is not enough.

Serhiy Nikolaychuk, deputy head of the National Bank of Ukraine, said that the country could meet all its debt obligations with monthly external assistance of $3 billion.

Caliber.Az