It has been 10 months since Russia invaded Ukraine. According to IMF estimates, Ukraine will lose at least one-third of its GDP in 2022. The Ukrainian economy adjusted to the war. New sectors of the economy were created that focused on supporting Ukraine’s armed forces.
The banking sector in Ukraine operated with no functional limitations during the whole war. Ukraine stopped the outflow of capital, implemented a fixed exchange rate, and took other necessary anti-crisis measures. Almost all banks continued operations. Thanks to this, there is financing and payments support. The economy receives income from taxes, also the social – security payments are possible.
Since October 2022, Ukraine has been under Russian energy terror, to make Ukrainians suffer in cold and darkness. Ukraine has created special stations where the people can come when there is no electricity, to charge their phones, get warm and receive hot meals.
The most important for Ukraine project is now power banking. This includes the creation of one network of branches of main banks, including over 1,000 branches in 200 cities and villages.
Ukraine has also to finance budget needs of about USD 38 billion with external funds, and plan to finance the budget through cooperation with the donor coalition and the domestic debt market.
Source: IMF Country Focus, International Monetary Fund
