Reuters: Ukraine's financing deficit could grow significantly due to delayed reforms

Ukraine may face a serious funding shortfall next year if Russia continues its intense attacks and the government fails to meet the reform demands of international creditors. About writes Reuters.

Currently, most of the state budget revenues go to the army, while social and humanitarian expenditures are financed by foreign aid. Since February 2022, Ukraine has received about $139 billion from its partners.

According to the head of the NBU Andriy Pyshnyi, only about a third of the required $65 billion for 2026 and 2027 has already been guaranteednegotiations on the rest of the funding are ongoing.

A survey of eight economists at the Center for Economic Research in Kyiv found that Ukraine may need between $39 billion (the same amount as this year) and about $58 billion in external financing next year.

Additionally, another $10-15 billion will have to be sought beyond the amounts already promised by the partners, according to ICU.

The negotiations are complicated by the fact that Ukraine has not fulfilled some of the key conditions of the creditors, in particular, the appointment of judges and heads of anti-corruption bodies.

Additional tension was caused by strengthening of control president Volodymyr Zelenskyy over the two main anti-corruption agencies (NABU and SAPO), which caused large-scale street protests and criticism from the EU.

After that, Zelensky submitted to the parliament new draft lawwhich should restore the independence of anti-corruption bodies.

To unblock new tranches from the EU and IMF, Ukraine needs to complete a number of reforms, including appointing more judges to the High Anti-Corruption Court, reforming the management of nationalized assets, and appointing the head of the Bureau of Economic Security.

• on June 27, it was reported that the NSDC decided on proposals for the budget declaration for the next three years: defense funding will be a priority.