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Transcript/ScriptWar Economy Ukraine – WEB
HEAD: Ukraine's Economy Surviving Invasion, But How Long Can It Last?
TEASER: Some members of the country's banking sector believe the country can raise funds beyond the recent IMF loan of $1.4 billion
PUBLISHED: 03/14/2022 at :12:10 p.m.
BYLINE: Oksana Bedratenko
DATELINE: Washington
CAMERA: Oleksii Osyka
VIDEO EDITOR: Oleksii Osyka
PRODUCER:
SCRIPT EDITORS: Enochs, Reifenrath
VIDEO FROM: VOA, Zoom, Skype
TYPE: TVPKG
TRT: 3:28
VIDEO APPROVER'S INITIALS: KE
UPDATE: Zoom interviews cleared for use ))
((INTRO))
[[The Ukrainian government is doing what it can to keep the country’s economy running during Russia’s invasion. Still, its money is running out fast. On March 10, the International Monetary Fund executive board approved a $1.4 billion loan to Ukraine. But experts say it won’t last for long. Oksana Bedratenko has the story, narrated by Anna Rice.]]
((NARRATION))
Despite Russia’s invasion of Ukraine extending into a third week, the country’s economy — including banks and transfers — keeps functioning, though a lot has had to be adjusted and altered.
((Elina Ribakova, Institute of International Finance))
“I would like to applaud the Ukrainian authorities for the dedication and effort and success that they've had so far managing the situation. We know that the central bank is working very actively.”
((NARRATION))
To keep things going, the National Bank of Ukraine had transferred close to 19 billion hryvnia, the equivalent of roughly $630 million, to its state budget.
It also limited all foreign exchange transactions and is managing the exchange rate to keep it stable.
Banks have introduced “repayment holidays” for their clients, says Oleksandr Petryk with the Council of the National Bank of Ukraine.
((Oleksandr Petryk, National Bank of Ukraine Council)) ((Skype))
“There are limitations on withdrawing cash, not just organizationally speaking. Realistically, delivering cash to ATMs is very risky at the moment because many large cities are home to military actions.”
((NARRATION))
But local businesses have figured out a workaround.
((Galina Kheilo, Association of Ukrainian Banks)) ((Zoom))
“Whoever needs cash can get it. And there is another solution that I think is ingenious — it’s a win-win. Retailers now work as ATMs. You can get cash at the cash register. That way, we can avoid additional cash-in-transit operations and not risk lives.”
((NARRATION))
Still, when a large portion of the economy is immobilized, money gets spent very fast. So, on March 10, the IMF executive board approved a $1.4 billion loan to Ukraine. But even that might not be enough.
((Elina Ribakova, Institute of International Finance)) ((Skype))
“My concern is that the loans so far being discussed might be enough for a month, rather than a full year of financing. So the gap is going to be extraordinary.”
((NARRATION))
Ribakova says the invasion will hurt profits and has damaged the country’s ability to produce goods. At the same time, the money the government has to spend during an invasion means expenses go way up.
But Ukraine can get some additional funds, says Oleh Churiy, former deputy head of Ukraine's Central Bank.
((Oleh Churiy, Former Ukraine Central Bank Deputy Chief )) ((Zoom))
“I can see a possibility of getting additional funding. Last year, the allocation of SDR [Special Drawing Right] equivalent to about US$650 billion took place. // It would be great if developed countries like the U.S. or European countries could transfer their share of SDR to Ukraine. If this mechanism works, Ukraine’s budget will have enough funds."
((NARRATION))
The National Bank of Ukraine is expecting more financial aid from donors.
((Oleksandr Petryk, National Bank of Ukraine Council)) ((Skype))
“According to the estimates by the National Bank, we expect financial aid of some 15 billion dollars in the near future to come from international organizations, our partner countries, etc. The whole world is supporting Ukraine today.”
((NARRATION))
Ukraine’s economy is having to adjust quickly to a martial scenario. But despite the relative flexibility of government financiers, the country will need international help to stay afloat.
((For Oksana Bedratenko in Washington, Anna Rice, VOA News))
NewsML Media TopicsArts, Culture, Entertainment and Media
NetworkVOA
Location (dateline)Washington D.C.
Embargo DateMarch 14, 2022 18:13 EDT
BylineWar Economy Ukraine – WEB
Brand / Language ServiceVoice of America - English
