March 2, 2024

Ukraine is suffering from financial problems. Civil servants will not be paid salaries and pensions soon

Ukraine is running out of money to pay civil servant salaries and pensions. Ukrainian Economy Minister Yulia Sviridenko said that if the United States and the European Union do not resume their financial support soon, these payments will have to be suspended for the time being. Information from Financial Times. “Support from our partners is critical,” she said. “We need you urgently.”

The suspension of payments will affect 500,000 government employees, 1.4 million teachers, and 10 million retirees. Kiev needs at least $37 billion from abroad next year. In the United States, Congress blocks a $60 billion financial package; In the European Union, Hungarian Prime Minister Viktor Orban prevents the disbursement of 50 billion euros over the next four years.

Sviridenko expressed hope that the EU funds would be approved in February and disbursed in March. But this will not be enough. The government has tried to increase its own revenues and, among other things, increased the bank profits tax to 50 percent. Kiev will primarily finance the army and service debt. Therefore, there was a risk of bottlenecks in the social sector.

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