Ukraine fears having to delay salary payments without Western aid
(Baonghean.vn) - Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko told the Financial Times on December 27 that the Ukrainian government may not be able to pay salaries and pensions on time without receiving financial support from the US and the European Union (EU).
The delay in payments will affect 500,000 civil servants and 1.4 million teachers, as well as 10 million pensioners, Ms. Svyrydenko added. “The support of our partners is extremely important. We need support urgently,” she said.
Ukraine's economy minister also fears that a lack of external support will push the country's economy into "survival mode" and Kiev will prioritize debt repayment and defense spending.
The Biden administration's request for $60 billion in aid for Ukraine remains stalled in the U.S. Congress, while the EU's four-year 50 billion euro ($55 billion) package was vetoed by Hungary in mid-December, the report said.
In a related development, the Financial Times reported that the EU is developing a contingency plan to help Ukraine, which would require member states to provide national financial guarantees, allowing the European Commission to lend up to 20 billion euros to Ukraine by 2024. This plan does not require unanimous agreement from all member states.
