The EU agreed on €50 billion in financing for Ukraine, which will support the hryvnia exchange rate

Yesterday, the EU leaders agreed to allocate 50 billion euros in the form of macro-financial assistance to Ukraine, - announced the President of the European Council, Charles Michel.

"The decision, which was supported by all 27 EU member states, will ensure stable, long-term, predictable financing of Ukraine. The EU, realizing what is at stake, takes leadership and responsibility in supporting Ukraine," Michel emphasized.

In 2024, Ukraine needs to attract $37-40 billion in external financing, part of which will be EU aid. U.S. aid would be very important, the decision on which the Trump-controlled Republicans are delaying to use as an argument in the U.S. presidential election.

In January, the revenues of the state budget of Ukraine amounted to UAH 154.9 billion, of which UAH 140.6 billion. of internal revenues and UAH 14.6 billion. external, in particular:

• tax - UAH 60.2 billion,
• customs - UAH 47.3 billion,
• OVDP - UAH 32.8 billion,
• international aid - $0.4 billion (14.6 billion UAH).

The work of the economy (without debts and grants) brought UAH 107.5 billion to the budget, which is a good indicator for peacetime, but now it is a very weak result, since similar volumes remain in the shadows.

We will remind that Ukraine cannot use international aid to finance the war.

In January, compared to December, the National Bank reduced the volume of interbank currency sales by 28.7%, from $3.553 billion to $2.533 billion.

According to the Ministry of Finance of Ukraine, the state and state-guaranteed debt has doubled since the beginning of the war and reached $145.3 billion or UAH 5,519.5 billion as of December 31, 2023. During 2023, the state debt grew by 35.4% in hryvnias or 1,444 billion hryvnias, and in foreign currency by 30.4% or $33.9 billion.

The interbank exchange rate of the dollar this week remained within the range of UAH 37.5-37.6/$. Experts believe that receiving aid from the USA and the EU will allow the hryvnia to be kept at the level of UAH 37.5-38/$, otherwise the exchange rate may rise.