Ministry of Finance attracted USD 5.3 billion in grants and concessional financing from international partners in July 2023

In July 2023, the State Budget of Ukraine received USD 5.3 billion of external financing. Grants provided on a non-refundable basis accounted for about 25% of the total amount of financial assistance.

Among the donors in July 2023:

• European Union - USD 1.67 billion (concessional financing);

• Japan - USD 1.5 billion (concessional financing);

• United States of America - USD 1.25 billion (grant);

• International Monetary Fund - about USD 890 million (concessional financing).

The funds from the EU are the sixth tranche of a large-scale Macro-Financial Assistance (MFA) for 2023. The total amount of funding under the MFA program reaches EUR 18 billion, of which Ukraine has already received EUR 10.5 billion. Macro-Financial Assistance is provided on unprecedentedly concessional terms for Ukraine. The loan repayment period is 35 years. At the same time, interest and other debt service payments will be compensated by the EU countries instead of Ukraine.

The concessional financing, guaranteed by the Government of Japan, was raised through the World Bank's ADVANCE Ukraine Trust Fund.

The grant from the United States is part of the fifth additional financing under the World Bank's PEACE in Ukraine project. 

Ukraine received funds from the IMF as a result of the successful first review of the Extended Fund Facility (EFF) Arrangement for Ukraine. The total available financing under the four-year EFF Program is USD 15.6 billion (SDR 11.6 billion).

The international assistance is aimed at the most urgent needs of the country, in particular, strengthening the social protection of Ukrainians.

International assistance is aimed at the priority social expenditures of the State Budget, in particular, provision of wages for workers in the field of education and healthcare, humanitarian needs, as well as provision of social protection of the population.

In total, for 7 months of 2023, the Ministry of Finance of Ukraine attracted more than USD 28 billion of external financing for the urgent needs of the State Budget. 

The Ministry of Finance of Ukraine is committed to accountability and efficient use of financial aid from its partners. In particular, the Ministry of Finance in cooperation with the World Bank ensures the transparency of the attraction and use of external financing. Ministry of Finance monitors the use of direct budget support from the U.S. Government together with Deloitte Consulting, which implements the USAID SOERA project, and performs a verification according to agreed procedures to determine the eligible public expenditures made by Ukraine under the PEACE in Ukraine project with the auditing company PriceWaterhouseCoopers Ukraine.