The G-7 will agree to more than $ 19 billion in short-term aid for Ukraine

According to German Finance Minister Christian Lindner, a group of seven industrialized nations will agree to provide 18 billion euros ($ 19 billion) in aid to Ukraine to guarantee the Kiev government’s short-term financing.

“We have to guarantee Ukraine’s capability for self-defense, so we are raising funds here to protect the liquidity of the Ukrainian government,” Lindner said in an interview with Bloomberg Television on the sidelines of the G7 finance ministers’ meeting near the forest on Friday. .

“It looks like we could raise more than 18 18 billion to support Ukraine at this crucial moment,” he added. The cash includes $ 7.5 billion pledged by the United States and money from the European Union, Lindner said, adding that “in the coming months the Ukrainian government should have no worries about financing the needs of their state.”

The Ukrainian government says the country needs $ 4 billion to $ 5 billion per month for short-term funding, while in the long run it needs a recovery strategy similar to the Marshall Plan for post-World War II Europe.

The overall restructuring effort will cost 600 billion, the country’s prime minister said last month. The International Monetary Fund expects Ukraine’s economy to shrink by 35% in 2022 as a direct result of the war.

“I think this is a very good sign that the G-7 countries are standing shoulder to shoulder with Ukraine because they are not only defending themselves, they are defending our values,” Lindner told Bloomberg.

“We are ready to monitor the situation, but I think at the moment we have made significant progress in ensuring the liquidity of Ukraine.”

G-7 leaders will meet in Bavaria, Germany, at the end of June, where a major aid package will be decided.

© 2022 Bloomberg

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