Jorgelina do Rosario and Karin Strohecker

LONDON, (Reuters) – Ukraine’s economy will contract by 45% in the coming year according to SerhiyMarchenko, Finance Minister of Ukraine. He also stated that his government is committed to paying its entire debt.

Ukraine anticipates a larger economic fall in 2022 than either the European Bank for Reconstruction and Development EBRD or the International Monetary Fund. Both have predicted that Ukraine’s economy will contract by between 30% and 35% during Russia’s invasion.

Marchenko stated that the people of Ukraine have been paying a huge price and it cannot be judged,” during a briefing held at the annual meeting in Marrakech of the EBRD.

His video link said that “What is possible to assess is the project of GDP decline. We’re around 45%”

After Russia’s February 24 invasion, the country continues to pay its international bond obligations. Due to $1 billion on September 1, the country will have to make $1 billion on an American dollar bond. The war has created a $5 billion monthly fiscal deficit.

Marchenko said that Ukraine should find more sources to fund this gap as it cannot cover 62% of the primary budget requirements without including military expenditures.

Marchenko said that we have raised $2.2 billion already in war bonds. “Military Bonds are an important investment in support of the state budget during wartime,” Marchenko added.