A grant from the Federal Republic of Germany in the amount of EUR1 billion went to the state budget of Ukraine, the Ministry of Finance of Ukraine reported on Friday.
“The grant funds were transferred to the state budget through a special administrative account opened by the International Monetary Fund to send money from donor countries to help Ukraine,” the ministry said in a press release.
According to him, the proceeds will be used to finance priority budget expenditures during martial law.
In total, since the beginning of the war, Ukraine has already received EUR1.3 billion from Germany to support the financial and budgetary system, the Finance Ministry said.
Earlier this week, the Treasury announced that it had received a EUR446.8 million loan from the World Bank (WB) with a UK guarantee for EUR424.6 million, a US grant of $1.3 billion through a WB multi-donor account, and a loan from Japan for the equivalent of about $500 million.
In April 2022, the IMF decided to create an administrative account for crediting funds as part of the Special Drawing Rights (SDR) from donor countries in favor of Ukraine. All funds raised using this account should be used to maintain the financial stability of Ukraine in the form of grants or credits (loans).
Germany became the second country to use this tool, after Canada, which provided a concessional loan of 1 billion Canadian dollars (the equivalent of $773 million) in the first half of June.
The government estimates the budget’s monthly deficit financing needs at $5 billion. Finance Minister Serhiy Marchenko previously predicted that international financial support for Ukraine would increase to $4.8 billion in June from $1.5 billion in May, and thanks to funds received at the end of the month, it was close to this amount. According to the head of the Ministry of Finance, in July the government expects to maintain the same significant volumes of external financing as in June. In particular, the second tranche of a US grant of approximately $1.3 billion and an EU loan of EUR1 billion are expected to arrive.
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