The Government of Ukraine is committed to implementing the reforms identified in cooperation with international partners: Sergii Marchenko at the meeting of the G7 financial bloc

During the working visit to Morocco for the Annual Meeting of the IMF and the World Bank, Minister of Finance of Ukraine Sergii Marchenko gave a speech at the meeting of the G7 financial bloc.

The event was attended by finance ministers and central bank governors of the G7 member states, as well as the IMF, World Bank, and European Commission.

The topics of discussion included Ukraine's financial system, the status of structural reforms, and cooperation with international financial organizations and the EU in the context of meeting budgetary needs in 2024.

Sergii Marchenko noted the promptness and coordination of the decisions of the G7 countries, the EU and the IFIs, which were undoubtedly crucial for maintaining economic and financial stability in Ukraine since the beginning of the full-scale war.

Finance ministers and representatives of the EU, IMF and World Bank have pledged to continue supporting Ukraine for as long as necessary.

In the speech, the Minister of Finance spoke about the current state of Ukraine's economy, the need for external financing for the next year, including for social protection and humanitarian aid.

"Ukraine's economy has demonstrated resilience this year. GDP growth is forecast to reach 4.7%. Inflation is declining faster than expected, to 7.1% in September 2023 from 26.6% in 2022. Domestic borrowing exceeded the plan and has already reached over USD 11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, totaling USD 33.8 billion in 2023," said Sergii Marchenko.

The joint efforts of the Government of Ukraine and international partners have been ensuring the full provision of all public services to the population for nine months in a row, avoiding monetary financing.

However, Sergii Marchenko emphasized that the uncertainty caused by the war remains. Strong external support continues to be vital for Ukraine. Ensuring timely budget execution is an important prerequisite for supporting the population and resisting the aggressor.

Regarding 2024, Sergii Marchenko emphasized that the 2024 budget envisages the accumulation of maximum resources for the security and defense sector, with expenditures at the current year's level, as well as creating conditions for the development of the domestic defense industry. At the same time, the budget envisages an increase in spending on social protection and humanitarian aid, as supporting Ukrainians is an important priority for the Government of Ukraine. The State Budget deficit is projected at USD 42.9 billion.

"I am extremely grateful to our partners for their assurances of continued support for the next year. We already have a number of agreements with countries such as Japan and the UK. Also, Ukraine and the EU are actively working on the launching of the Ukraine Facility for 2024-2027 with a total amount of EUR 50 billion. If Ukraine performs the conditions set in cooperation with the IMF, it will receive USD 5.4 billion under the EFF program next year. However, even taking into account all these commitments, the deficit remains high," the Minister of Finance of Ukraine added and expressed hope that donors will help Ukraine to ensure social and humanitarian expenditures in full.

In addition, it was noted that the Government of Ukraine is absolutely committed to the reform agenda, which was defined in cooperation with international partners. With the support of the International Monetary Fund, the European Union, and the United States, the Government of Ukraine has developed a wide range of priority reform areas.

"We are determined to ensure the proper and full implementation of the terms and conditions agreed by the parties to the financing, as well as to implement structural reforms. This will help limit the devastating effects of the war, reduce risks to stability and lay the groundwork for economic recovery," said Sergii Marchenko.

Ukraine has already implemented a number of measures and policies envisaged by the IMF's Extended Fund Facility and the EU's Macro-Financial Assistance programs.

Finally, the Minister of Finance of Ukraine emphasized that the negative impact of the russian war goes far beyond Ukraine. It is important to continue to consolidate efforts and find new solutions that will stop the aggressor and accelerate the development of the global economy.