Budget support in 2025, new cooperation projects. Results of the working visit of the Ministry of Finance team to the IMF and World Bank Annual Meetings

On October 21-26, the team of the Ministry of Finance of Ukraine headed by the Minister of Finance took part in the Annual Meetings of the IMF and the World Bank. 

During the six days of the working visit, the delegation of the Ministry of Finance held over 70 meetings with international financial leaders: finance ministers of the G7 countries, the European Union, key partners of the Asia region, the management of the International Monetary Fund, the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, and the United States Agency for International Development (USAID).

The Minister of Finance also gave a speech at the meeting of the G7 financial bloc and at the Ministerial Roundtable Discussion for Support to Ukraine. 

The discussion was focused on:

• Budget support for Ukraine in 2025, in particular, the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism in the amount of USD 50 billion,

• Implementation of existing and launch of new projects to support Ukraine in cooperation with international financial institutions.

All partners emphasized their readiness to strengthen cooperation with Ukraine, which is also confirmed by significant achievements in mobilizing aid for the next year. 

By the end of this year, the Ministry of Finance of Ukraine expects to attract more than USD 15 billion in external financing. The partners have assured that they will provide their support in full.

During the discussions with the heads of the finance ministries of the EU countries, the performance of Ukraine under the Ukraine Facility Plan was noted. Next year, the instrument provides EUR 12.5 billion in budget support.

The IMF optimized the schedule of tranches for 2025, increasing the financing plan for Ukraine from USD 1.8 billion to USD 2.7 billion. 

The G7 countries demonstrated unity on the issue of using the proceeds from the frozen assets of the russian federation in favor of Ukraine. The funds are expected to be available from the first days of 2025.

In Washington, D.C., Sergii Marchenko and US Treasury Secretary Janet Yellen signed a joint statement that formalized the agreement to provide Ukraine with USD 20 billion under the ERA. In addition, Chancellor of the Exchequer Rachel Reeves announced a proposal to raise £2.26 billion (USD 3 billion) to implement the mechanism.

The final decision of all G7 countries is expected in the near future. 

The implementation of joint projects and the creation of new ones were discussed with the leaders of the World Bank, EIB, and EBRD. The volume of the portfolio of joint projects with these institutions is the largest in all the years of cooperation. Support in key sectors of Ukraine's economy will be expanded.  

Together with the WB, we are actively working to launch two new projects by the end of the year: Resilient, Inclusive, and Sustainable Entrepreneurship (RISE) and Supporting Reconstruction through Smart Fiscal Governance (SURGE). 

The EIB continues to expand its energy support to Ukraine. The EIB recently announced that it intends to invest up to EUR 600 million to finance emergency energy projects in the public and private sectors. In addition, during a meeting with Bank President Nadia Calvino and European Commissioner for Economy Paolo Gentiloni, a statement of intent was signed to provide grant funding in the amount of EUR 12 million as part of the project to establish the EU 112 emergency assistance system in Ukraine. The total assistance under the project will consist of a EUR 12 million grant and a EUR 40 million loan.