(Bloomberg) -- Ukraine will need at least $3 billion a month next year to finance its wartime economy, which means allies will have to step up with more support, the head of the International Monetary Fund said.
“Our current thinking is that the financing requirements” will be around $3 billion to $4 billion a month, Kristalina Georgieva said at a meeting in Washington on Wednesday to discuss global economic support for Ukraine, according to a draft text of her comments.
Developments in the war “could push financing needs beyond this range,” as the government seeks to maintain basic social services, repair infrastructure and import energy, Georgieva said. “This requires actions on the part of the authorities but importantly also the international community.”
Ukraine's allies, chiefly the US and European countries, have been helping Ukraine with cash to keep its economy afloat, as well as weapons to bolster its resistance against the Russian invasion that began in February. The numbers cited by Georgieva suggest there will be pressure to continue that aid all through next year.
The IMF chief said that Ukraine's “international partners” have contributed a total of $35 billion in grants and loans so far this year. The Fund itself approved another $1.3 billion in new emergency financing last week. That will bring the total amount that it's mobilized for Ukraine this year close to $5 billion.
Read more: G-7 Leaders Pledge to Support Ukraine ‘for as Long as It Takes'
The US, which has been the single biggest donor, has pushed other allies to do more. Treasury Secretary Janet Yellen has been calling for stepped-up support this week. In her comments at the Wednesday meeting, Yellen cited the recent approval by Congress of another $4.5 billion in grant assistance for Ukraine, on top of $8.5 billion already disbursed.
“We welcome the efforts of all donors to meet Ukraine's needs,” Yellen said, according to a draft text of her comments. “However, the scale, predictability and grant component of disbursements must improve.”
The European Union is in discussions to extend Ukraine around €18 billion ($17.5 billion) in funding next year, which would cover about half of what the country needs. The European Commission is still working on the details of the new plan and some elements, including the size of the package, haven't been finalized, people familiar with the discussions said earlier this week. The proposal could come as soon as next week.
(Updates with details of EU aid package in last paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
