Needs of private sector for recovery in 2024 amount to USD 5.8 billion - Economy Ministry

The needs of the Ukrainian private sector for 2024 only in the part of industry and commerce amount to USD 5.8 billion, while part of the sources of financing are already available for business.

This is stated in the message of the Ministry of Economy, Ukrainian News Agency reports.

Thus, the World Bank's study on the damage and recovery needs of Ukraine states that Ukrainian industry and the commercial sector are the basis of the Ukrainian economy and generate about 1/3 of the gross domestic product, as well as provide jobs for about 6 million people, and the losses of the sectors due to the war estimated at approximately USD 15.6 billion.

"Therefore, the restoration of the private sector is a key priority for the Government of Ukraine. Only in 2024, the needs of industry and commerce in investments amount to USD 4.2 billion, and for working capital - USD 1.6 billion, that is, together - USD 5.8 billion. This the general need for financing the sector, which we intend to provide with our international partners," said First Vice Prime Minister - Minister of Economy Yuliya Svyrydenko.

At the same time, the main areas of financing that the government, donors and international financial organizations will provide this year are grants for business recovery and modernization, partial compensation of interest rates under the 5-7-9% affordable loans program, support for Ukrainian exporters through the Export Credit Agency, programs war risk insurance, incentives for investment in the private sector, and financing of capital investment and equipment renewal of domestic enterprises affected by the war.

"The report foresees at least USD 1.6 billion in investment financing, and it is important that the tools for obtaining them are available to companies, both through the banking system, corporate financing, and project financing. Especially in capital-intensive industries that require the installation or renewal of production lines, as, in particular, in the processing industry. In order to ensure financing, we will use the Ukraine Facility and, in particular, the Investment Framework to reduce the risks of projects in Ukraine," Svyrydenko concluded.

As Ukrainian News Agency earlier reported, Ukraine's reconstruction needs already amount to almost USD 486 billion.