External financing under threat: what does this mean for the hryvnia and the economy

Ukraine plans to attract about $35 billion in external investments and loans next year, but only $22 billion in financing has been confirmed so far.

This was stated by the Chairman of the National Bank of Ukraine, Andriy Pyshny, in an interview with RBC-Ukraine.

“For next year, we currently have $22 billion in confirmed sources, but the need is about $35 billion. This means that we still need to negotiate the remaining amount and consolidate it at both the political and operational levels,” Pyshny noted.

He added that if the negotiations are unsuccessful and the needs remain at the same level, the regulator will be forced to react. At the same time, the head of the NBU emphasized the intention to avoid issuing financing for the budget deficit.

“I can repeat once again – we are steadfast in our intention to avoid emission financing of the budget deficit,” the head of the National Bank emphasized.

Pyshny also reported that Ukraine expects to receive approximately $54 billion in external financing by 2024. He emphasized the willingness of political stakeholders to support this level of financing.

“We understand that in 2025 we need to receive a sufficient amount of financing, including to form a certain foreign exchange liquidity buffer for 2026. In other words, to have a transitional balance,” Pyshny explained.

Recall that until the end of 2025, tariffs for electricity, gas, heating, and hot water supply in Ukraine will remain at the current level. However, they are expected to gradually increase starting next year.

As reported, the National Bank of Ukraine is open to discussing the legalization of virtual assets, but insists on adhering to key principles that will ensure the stability of the monetary system.

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