S&P: US, EU aid stabilizes Ukraine's FX reserves

S&P Global Ratings predicts that the allocation of donor funds to Ukraine will continue in the coming months, primarily from the United States and the European Union, Report informs.

In addition to meeting the needs of the budget, this income should also help stabilize Ukraine's gold and currency reserves, the agency said.

S&P noted that Ukraine's foreign exchange reserves fell by 20% to $22.4 billion in February-July 2022.

The agency said that the Government of Ukraine is reviewing the IMF's new financing mechanism and policy.

The timing and details of the new program have yet to be determined. But if the program is approved, it could further ease pressure on government financing, supporting confidence and macroeconomic stability.