Ukraine received $1.2 billion in foreign aid in two months, 75% of which are grants

Author:
Sofiia Telishevska
Date:

In January and February 2024, the general fund of the state budget of Ukraine received $1.2 billion in external financing.

This was reported by the press service of the Ministry of Finance.

Grant funds provided on non-refundable terms made up almost 75% of the total amount of financial assistance during this period.

In total, the money came from:

  • Japan — $901 million (concessional financing and grants);
  • Norway — $295 million (grant);
  • Spain — $3 million (concessional financing).

All the funds for the first two months of 2024 have reached the state budget through World Bank projects.

Japan provided a grant for $465 million within the framework of the project "Supporting public expenditures to ensure sustainable public administration in Ukraine" (PEACE in Ukraine), a soft loan for $297 million through the project "Investment in social protection to increase coverage, sustainability and efficiency" (INSPIRE), a $89.8 million grant through the "Emergency Project for Providing Inclusive Support for the Restoration of Agriculture in Ukraine" (ARISE), a $49.4 million grant through the "Housing Repair to Restore Peopleʼs Rights and Opportunities" (HOPE) project.

Norway directed grant funding in the amount of $295 million within the framework of the PEACE in Ukraine project.

A $3 million loan guaranteed by Spain was raised through the project "Strengthening the Health Care System and Saving Life" (HEAL Ukraine).

International aid is directed to the financing of priority social expenditures of the state budget, in particular, to the provision of wages for employees of the education and health sectors, employees of the State Emergency Service, pension payments, humanitarian needs, as well as to the provision of social protection of the population.

It is expected that in March 2024, the budget of Ukraine will receive financial assistance from the European Union, Japan and Great Britain, as well as from the IMF for the successful third review of the cooperation program, which must be approved by the Fundʼs Executive Board.