Serhii Mamedov, Chairperson of the Board of Globus Bank, discussed whether there is a threat of mass client outflow due to escalation on the front lines and the possibility of a new aggression.
"War risks have been and remain significant, and this is nothing new. It's been over 2 years since full-scale war has become an inseparable part of all spheres of life and the country's economy. We owe a debt of gratitude to the Armed Forces of Ukraine, who heroically defend our country, for the fact that to some extent, Ukraine has adapted to living in a new dimension, although such 'adaptation' comes at a huge cost every day. However, the risk of client outflow or contraction of banking lending and deposit programs may arise from the risk of not receiving extremely necessary macro-financial assistance, particularly from the USA," emphasized the expert.
He reminded that since the beginning of the year, Ukraine has already received $10.1 billion of external financing (over $9 billion in March alone), which fully covers the 3-month external financing need (from January to March inclusive). At the same time, Ukraine has been waiting for a powerful package from the USA for over half a year — over $61 billion, of which $9.6 billion will be allocated for economic support.
"Without this assistance, the Ukrainian government will have to raise funds from new-old 'donors' or, for example, reduce annual state budget expenditures by over 380 billion UAH (13.4% of the total expenditure), which is extremely undesirable in wartime conditions," emphasized Serhii Mamedov.