U.S. to send $4.5 billion more to Ukraine for budget needs

Posted 55 days ago

From WWW.REUTERS.COM

Aug 8 (Reuters) - The United States will provide an additional $4.5 billion to Ukraine's government, bringing its total budgetary support since Russia's February invasion to $8.5 billion, the U. S. Agency for International Development said on Monday.

The funding, coordinated with the U. S. Treasury Department through the World Bank, will go to the Ukraine government in tranches, beginning with a $3 billion disbursement in August, USAID, the Agency for International Development, said.

It follows previous transfers of $1.7 billion in July and $1.3 billion in June, USAID said. Washington has also provided billions of dollars in military and security support. The Pentagon announced a $1 billion arms aid package on Monday. read more

Overall, the United States has contributed more than $18 billion to Ukraine this year.

The new budgetary funds are to help the Ukrainian government maintain essential functions, including social and financial assistance for the growing poor population, children with disabilities, and millions of internally displaced persons, as the war drags on.

Ukrainian officials estimate the country faces a $5 billion-a-month fiscal shortfall - or 2.5% of pre-war gross domestic product - due to the cost of the war and declining tax revenues. Economists say that will swell Ukraine's annual deficit to 25% of GDP, compared with 3.5% before the conflict.... (Read more)