Ukraine and Switzerland launch new project to strengthen local fiscal capacity and support recovery. Ministry of Finance signed Memorandum

The Ministry of Finance of Ukraine and the Swiss State Secretariat for Economic Affairs (SECO) have signed a Memorandum of Understanding on the implementation of the project “Fiscal Governance for Local Reconstruction and Recovery” (FG4R).

The document was signed by Minister of Finance of Ukraine Sergii Marchenko and Ambassador of Switzerland to Ukraine Felix Baumann.

The new four-year project will become an important instrument for supporting Ukrainian communities in the process of recovery and modernization. Its objective is to strengthen public financial management at both the national and local levels, ensuring a transparent, efficient, and sustainable recovery of Ukraine.

"The signing of this Memorandum is another testament to the strategic partnership between Ukraine and Switzerland. At a time when the full-scale war continues and Ukraine is rebuilding its damaged cities and villages, effective management of local public finances is of particular importance. Switzerland’s support will help Ukrainian communities strengthen their fiscal capacity and introduce modern approaches to planning and implementing recovery projects," said Sergii Marchenko.

The total contribution of the Swiss Confederation to the project amounts to nearly CHF 7.4 million. The initiative will be implemented through October 2029.

Under the project, Ukrainian communities will receive support in improving budget planning, local revenue and debt management, strengthening internal control and audit systems, and enhancing the transparency of budget processes. Particular attention will be paid to Public Investment Management, which is a key element for the successful implementation of recovery and reconstruction projects.

For its part, SECO reaffirmed its commitment to continue supporting Ukraine in its recovery efforts and in strengthening the institutional capacity of both the state and local governments.

The project will be implemented by Cowater International Inc., an international consulting company that will work in partnership with the Ministry of Finance of Ukraine, Ukrainian communities, and international experts to deliver the initiative.