Ukraine Finance Minister forecasts 45% GDP drop, committed to servicing debt – Reuters

Wealthlandnews
Wealthlandnews May 12, 2022
Updated 2022/05/12 at 10:41 PM

An aerial view shows a tractor spreading fertiliser on a wheat field near the village of Yakovlivka after it was hit by an aerial bombardment outside Kharkiv, as Russia's attack on Ukraine continues, April 5, 2022. REUTERS/Thomas Peter
LONDON, May 11 (Reuters) – Ukraine's economy is expected to contract by 45% this year, the country's Finance Minister Serhiy Marchenko said on Wednesday, adding his government was committed to servicing its debt in full.
Ukraine expects a bigger economic decline in 2022 than both European Bank for Reconstruction and Development (EBRD) and the International Monetary Fund, which have projected the country's economy to shrink by 30% to 35% amid Russia's invasion.
"People of Ukraine are paying an enormous price, and this price cannot be assessed," Marchenko said during a briefing at the annual meeting of the EBRD in Marrakech, Morocco.
"What can be assessed is the projection of GDP decline, we are around 45% this year," he added, speaking by video link.
The country has continued to service its international bonds since Russia's invasion on Feb. 24. The country is due to pay $1 billion due on a dollar bond on Sept. 1 and is facing a $5 billion fiscal gap on a monthly basis due to the war.
Marchenko added that Ukraine needs to find additional sources to finance this gap, because the country can only cover "62% of our primary budget needs" without including military expenditure.
"We have already raised over $2.2 billion in war bonds," Marchenko added. "Military bonds are (an) important investment to support state budget in war times."
Our Standards: The Thomson Reuters Trust Principles.
Subscribe to our newsletter to get all the news you need to start your day.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

close

WEALTHNEWS

SUBSCRIBE AND AWESOME WEALTH NEWS - DON’T MISS OUT!

We don’t spam!

Share this Article