Sergii Marchenko Held an Online Meeting with the Chancellor of the Exchequer of the United Kingdom

Today, the Minister of Finance of Ukraine, Sergii Marchenko, held an online meeting with the Chancellor of the Exchequer of the United Kingdom Nadhim Zahawi. 

The parties discussed the macroeconomic situation in Ukraine, instruments of financing the state budget in wartimes, and the decision of the G7 countries and members of the Paris Club to suspend debt service payments for Ukraine.

Sergii Marchenko congratulated Nadhim Zahawi on his appointment and thanked him for his clear position at the recent G20 meeting. The Chancellor of the Exchequer of the United Kingdom emphasized that Russia's actions caused the global food and energy crisis.

During the meeting, Nadhim Zahawi condemned Russia's criminal actions against Ukraine and assured that the United Kingdom will continue to actively help our country.

"Today, cooperation between our countries is stronger than ever. The United Kingdom is a key partner of Ukraine and provides significant assistance in all areas in the fight against the aggressor. I thank you for all the UK's initiatives to support Ukraine, in particular for the providing a guarantee for the financing of budget expenditures”, said the Minister of Finance of Ukraine.

Ukraine received a loan under the World Bank Project Supporting public expenditures to ensure sustainable public administration in Ukraine. The total amount is EUR 446.8 million. As part of this financing, the UK guarantee amounted to EUR 424.6 million.

Sergii Marchenko noted that during the 5 months of full-scale war, the Government continues to function without interruption, ensuring all priority expenses: pensions, social benefits, salaries for education and health care workers, and military expenses.

During the meeting, the Minister of Finance of Ukraine said that the war caused a decrease in state budget revenues, an increase in expenses and unprecedented pressure on liquidity. That is why Ukraine needs more direct budget support from partners. Concessional financing and grants from international organizations and friendly countries are one of the main sources of funding for the state budget in wartimes.

The issue of suspending debt payments for Ukraine until the end of 2023 with the possibility of extending the deferral for another year was also discussed. Sergii Marchenko thanked the G7 countries, in particular the United Kingdom, and the Paris Club for supporting this decision.

Suspension of debt service payments on Eurobonds and GDP-linked warrants in the next 2 years makes it possible to save USD 5 billion for the urgent needs of the country.