Ukraine Gate- Kyiv – May 17, 2022- US Treasury Secretary Janet Yellen called on US allies on Tuesday to increase financial support for Ukraine, saying the money announced so far would not be enough to cover the country’s short-term needs as it resists Russia’s military operation.
In prepared remarks to the Brussels Economic Forum, Yellen said that Ukraine’s financing needs are great, adding that the Ukrainian government continues to work because of the skill and courage of its officials.
She also said that over the months in order to resume tax collection at a rapid pace, Ukraine needs budget funding to pay the salaries of soldiers, employees and pensioners, as well as to run an economy that meets the basic needs of its citizens… It will need to transform to repair and restore vital facilities and services.
She also added that what is clear is that the bilateral and multilateral support announced so far will not be sufficient to meet Ukraine’s basic needs.
This comes as Ukrainian President Volodymyr Zelensky and the International Monetary Fund say that with the Russian military operation shutting down up to half of the Ukrainian economy, the country needs near-term external financing of about $5 billion a month to meet basic needs.
On Wednesday, the European Union is set to propose a new package of loans to Ukraine to provide immediate liquidity, as well as commitments for long-term reconstruction.
While the short-term package is still being defined, two officials familiar with the discussions told Reuters they expect it to roughly cover Ukraine’s financial needs for two months.
