Ukrainian Prime Minister Denys Shmygal holds a briefing on preventive measures against the COVID-19 (coronavirus) in Kyiv on March 11, 2020. – Ukrainian authorities announced on March 11 they were closing schools and universities across the country for three weeks to prevent the spread of the novel coronavirus. The Ukrainian government said in a statement it was also banning all mass events in the country with more than 200 expected participants. The measures will take effect from March 12. (Photo by Sergei SUPINSKY / AFP)
Ukraine’s Cabinet of Ministers will create a roughly Hr 200 billion ($7.17 billion) stabilization fund for the country, Prime Minister Denys Shmygal stated on the ICTV television channel’s talk show Svoboda Slova on March 24.
The fund will sustain vulnerable people whose incomes are disrupted by the ongoing COVID-19 epidemic, which has shut down businesses and transportation across the country.
“This will be absolutely enough to provide for pensioners and for people who need help due to job loss,” said Shmygal.
Former Economy Minister Tymofiy Mylovanov estimated that at least 500,000 people will lose their jobs due to the crisis. Meanwhile, Ukraine’s gross domestic product (GDP) is projected to contract in 2020 and the country’s budget deficit could climb from 2.1% to 7% of GDP.
Ukrainian officials have also previously estimated that it will cost about $4 billion just to fight the COVID-19 disease. They said they need more money from the International Monetary Fund (IMF) to protect citizens against the virus. Talks are ongoing with the IMF over a $5.5-billion extended fund facility, as well as a possible $50 billion coronavirus rescue package.
Additionally, Shmygal said the Cabinet is putting together a strategic think tank to try to respond to the economic problems caused by the epidemic after discussions with analysts, businesses and the presidential office.
“We agreed that we would form an open strategic platform created on the basis of professionalism,” Shmygal wrote on his Telegram channel.
The prime minister said that the coronavirus-caused economic crisis will be worse than the global economic downturn of 2008, even though Ukraine is better prepared today and has stronger macroeconomic fundamentals.
Many businesses told media that they feared Ukraine lacked the financial reserves to weather a prolonged quarantine.
