Possible options for closing the budget deficit
The National Bank of Ukraine explained the possible options for closing the budget deficit in case of a delay in funds from the European Union. On December 18, 2023, Serhiy Nikolaychuk, Deputy Head of the National Bank, noted that the government has the opportunity to cover the budget deficit through Ukrainian banks.
Loan from the European Union
At the same time, the European Union is considering the possibility of providing Ukraine with a loan of 90 billion euros, which could be formed from frozen Russian assets. However, not all EU countries support this initiative. In particular, Belgium opposes granting the loan.
Serhiy Nikolaychuk also noted that the risks regarding external financing are quite significant. At the same time, obtaining reparations credit is still considered by the government as a basic scenario. The European Parliament is ready to implement an expedited procedure for making a decision regarding reparations credit, which could determine further steps for Ukraine's financial stability.
The situation regarding the financing of the Ukrainian budget remains complicated, especially in the face of uncertainty from partners. The delay in funds from the EU may negatively affect the economic situation in the country. However, the possibility of obtaining a loan and using internal reserves demonstrates the government's readiness to adapt to challenges and seek alternative solutions to ensure budget stability.