Keeping Ukraine’s finances afloat, outs to rising food prices, supporting weak countries: the big G7 moneymakers will not have enough at their meeting in Germany to deal with all the economic effects of the war launched by Moscow .
The first requirement of this meeting, Thursday and Friday, of the finance ministers of the seven industrial powers (United States, Japan, Canada, France, Italy, United Kingdom, Germany) is to complete a new round of table to cover the Ukrainian budget for the current quarter.
To run the country’s economy, kyiv assesses its needs at 5 billion dollars per month.
We are asking for high financial support, but the price is also high. It is a way for us to liverecently explained inAFP Minister of Finance of Ukraine Sergey Marchenko.
With the massive $ 40 billion extension for Ukraine put in place last week by US President Joe Biden, about $ 7.5 billion should fill the Ukrainian budget in the short term, according to G7 ministerial sources.
” I will ask my counterparts to join us in increasing their financial support for Ukraine. Ukraine already has […] need our help and they need it now. “
On Wednesday, the European Commission proposed for its part a new macro-financial assistance in Ukraine for this year in value up to 9 billion euros (12.1 billion Canadian dollars).
The proportion of loans and direct assistance in the new support package is on the menu of G7 discussions.
This is to ensure the solvency of Ukraine for the next few days, in the next weekscomment by the German Minister of Finance, Christian Lindner, on the eve of the main meetings.
[…] We all have a responsibility to make a visible contributionthe minister added that the country is leading the G7 this year.
As the war continues to ravage a large part of Ukrainian territory, discussions are already underway on assistance for the rebuilding of the country.
The discussions just getting startedunderlined Ms. Yellen in Königswinter, but cited funding methods, such as the use of Russian assets frozen in the context of Western sanctions.
If Germany considers this hypothesis politically conceivableit emphasizes, like France, that there are many legal barriers.
We must take a good look at the barriers imposed on ussaid the French Ministry of Finance.
We must respect the rule of law, even if we are dealing with the Russian oligarchsobservation of the German minister.
The war launched by Russia should cause a massive recession of the Ukrainian economy, estimated by 30% by the European Bank for Reconstruction and Development, and even by 45% by the World Bank.
To varying degrees, the entire global economy has been affected by this offensive and the resulting sanctions against Moscow.
Against a backdrop of worsening inflation and the threat of food crisis in some countries, the IMF reduce its forecast for global growth to 3.6% this year, down from a projection of 4.4% in January. And a stalemate in the war in Ukraine along with additional sanctions would be further damaging to the global outlook.
We are witnessing serious economic consequences, especially for low -income countries, due to rising interest rates and rising world prices for agricultural products.urged the German finance minister.
” We need to work together on how we can stabilize the global economy. “
While 60% of low -income countries are in over -debt or in danger soon, Christian Lindner called on China, one of the largest lenders in the worldbe more transparent of its poor lending practices in the country.
Beijing has always been reluctant in this matter. This no longer makes sense: we need to know right away who is in debt and howto better coordinate aid with these countries.
Source: Radio-Canada
