Second meeting of the Steering Committee for the Multi-Agency Donor Coordination Platform for Ukraine

Today, on April 5, the second meeting of the Steering Committee of the Multi-Agency Donor Coordination Platform for Ukraine was held. 

The Platform is co-chaired by Minister of Finance of Ukraine Sergii Marchenko, White House Deputy National Security Advisor for International Economics Michael Pyle for the United States and Directorate-General Neighbourhood and Enlargement Negotiations Gert Jan Koopman for the European Commission. The meeting was also attended by representatives of the G7 countries, European Commission and IFIs. 

The parties discussed tools to improve the coordination of economic support for Ukraine, as well as the needs for future recovery and reconstruction.

Sergii Marchenko updated on the State Budget financing needs and gap, informed that  the international partners have assured Ukraine of their continued support. Also the Minister of Finance described Ukraine's needs for rapid recovery.

"For this year, we have a significant need to attract external financing to cover such priority expenditures as social and humanitarian. I am grateful to the international partners for assuring to support Ukraine in covering this year's budget deficit," said Sergii Marchenko.

The Minister of Finance added that this was made possible, in particular, due to the recent IMF approval of a new four-year Extended Fund Facility (EFF) Program for Ukraine worth USD 15.6 billion.

"Last week we achieved an extraordinary result in our cooperation with the International Monetary Fund. For the first time, the country that defends itself from full-scale agression has received approval from the Fund for a financial cooperation program. This decision is a crucial indicator of confidence and trust in Ukraine, which will help attract additional financial resources from international donors," said Sergii Marchenko.

As for recovery and reconstruction, the parties discussed Ukraine's most urgent priorities, according to the RDNA2 report of the Government of Ukraine, the World Bank, the European Commission and the UN. Ukraine needs USD 14.1 billion in 2023 to implement rapid recovery in 5 areas:

• recover of energy infrastructure

• humanitarian demining;

• restoration of damaged housing;

• restoration of critical and social infrastructure;

• support for the private sector.

Also, the Minister of Finance of Ukraine emphasized that the recovery plan for Ukraine is not just about rebuilding destroyed roads and houses. It is a complete transformation of Ukraine based on the principle of “build back better” and the country's integration into the European Union. 

"The Government of Ukraine expects the Platform to ensure 

close coordination between international donors and international financial organizations, as well as coordinated, transparent and accountable provision of support for the reconstruction of the country," added Sergii Marchenko.

USD 3.3 billion of the required USD 14.1 billion has already been allocated from the State Budget for the rapid recovery. To finance the remaining USD 10.8 billion, the Government of Ukraine is сommited to constructive and fruitful cooperation with donors and the private sector.

The Minister of Finance of Ukraine also emphasized that the progress in the implementation of structural reforms on the way to the EU accession is one of the main priorities of the Government. This will help to limit the devastating effects of the war, reduce risks to stability and create a basis for economic recovery. 

The key short-term reform areas identified jointly with partners, including the IMF and the EU, include: strengthening macro-financial stability, fiscal  structural policies, fiscal transparency and risk management, strengthening public investment management, deregulation of economic activity and improvement of the business climate, strengthening the fight against corruption, and energy sector reform.

The co-chairs welcomed the commitment of the Ukrainian Government towards budgetary stability and to defining a comprehensive, whole-of-government prioritization of strategic rapid recovery needs for 2023. And assured of their support for Ukraine on its recovery path and in its integration into the European Union.

In conclusion, the participants of the meeting emphasized the importance of continuing the operation of the Platform to mobilize international assistance necessary to respond to Ukraine's needs in a timely manner. 

Additional information

The Multi-Agency Donor Coordination Platform for Ukraine started its work on January 26, when the first meeting of its Steering Committee was held. The initiative was launched to coordinate existing and new mechanisms to support Ukraine's budget, as well as rapid recovery and reconstruction.