The government will have to print billions of hryvnias to meet the budget

“Bloomberg is analyzing the measures Ukraine’s leadership might take if new Western financing is not provided in sufficient amounts.

Among the options: increasing tax revenues, which is an obvious issue in the conditions of a weakened economy, cutting expenses despite the population already feeling ‘besieged,’ devaluing the hryvnia, printing money, which Finance Minister Marchenko stated would have ‘negative consequences,’ particularly leading to inflation growth.

The Ministry of Finance hopes that the National Bank will devalue the hryvnia, which should increase tax revenues through sources such as higher customs duties. The IMF has set a limit on the printing press: no more than 50 billion hryvnias per quarter. Politicians surveyed by the publication still maintain ‘some confidence’ that external financing will eventually be approved. The budget deficit for the next year amounts to over 40 billion dollars. Confirmation has been received of receiving less than a third of this amount from external sources.”