The €4.2 billion provided by the European Union under the Ukraine Facility programme is the first money our country has received for reforms. Previous tranches were transitional funding provided to support the budget. The funds provided by the partners are quite enough to finance non-military expenditures this year.
This was stated by Roksolana Pidlasa, the MP, Chair of the Parliamentary Committee on Budget.
"Part of the funds provided under the Ukraine Facility programme will have to be returned. Out of the transferred amount, €1.5 billion is a non-repayable assistance, i.e. a grant, and €2.7 billion is a loan. The benefit is that we do not pay interest on the use of this money, as the EU subsidises our interest. We will have to return these funds after the war is over in a certain period of time. We have now switched to a regular mode of operation under this programme, which means we will receive tranches after each quarter if we meet all the conditions," the politician explained.
She added that Ukraine has already fulfilled some of the conditions of the Ukraine Facility, for example, the laws on strengthening the independence of the SAP and increasing the staff of the NABU.
"We still need to pass several laws in the Rada, for example, some amendments to the Criminal Procedure Code, a law on reducing and controlling industrial pollution. The Cabinet of Ministers has several indicators to fulfil, such as approving the National Strategy for Demographic Development until 2024 or planning how they will deregulate business activities and reduce pressure on business in the coming years. I am almost 100% confident that all the conditions will be met on time," the MP said.
According to her, the money that Ukraine will receive by the end of the year will be quite enough for non-military expenditures if we receive everything that our partners have promised.
"We will close the year without any problems. We expect $3.95 billion from the US by the end of the year, subject to certain conditions. They expect us to reform the customs and the Accounting Chamber. This is the responsibility of the Parliament, which will pass the relevant laws. We are also expecting two tranches from the IMF totalling $2.2 billion, which should come after the 5th and 6th revisions of the programme with the IMF, respectively," Roksolana Pidlasa informed.
She reminded that all the money received from international partners will be used for non-military expenditures. This primarily concerns pensions, salaries in the public sector, grants for small and medium-sized businesses, relocation of enterprises, etc.