Belgium, (Brussels Morning Newspaper) European Investment Bank (EIB) President Werner Hoyer proposed a global aid plan for Ukraine to rebuild the country after the war.
In an interview with Reuters on Wednesday, he predicted that rebuilding Ukraine will cost trillions of euro and added that Europe will need the help of its partners to finance the effort.
Hoyer noted that he recently discussed expected cost of rebuilding Ukraine at the United Nations, the World Bank and the International Monetary Fund.
“We are not talking about millions but trillions,” he pointed out and added “it’s a challenge for the entire free world to make sure that this will be provided.”
He stressed the importance of reaching an agreement on the plan and noted that Western state-sponsored banks should provide guarantees to the government of Ukraine after the war.
“If we want to entice the investor community to give us their money… we need to give them reassurances,” he noted and predicted that “the capital markets will be open to this.”
EIB prepared to provide aid
Hoyer reminded that the EIB already provided financing to Ukraine and pointed out that the bank can make additional 1.5 billion euro available to the country with the approval of the European Commission.
Ukraine could use international aid to rebuild rail infrastructure which the country could use to export last year’s harvest, Hoyer noted and pointed to approximately 8 billion euro worth of wheat, according to estimates.
“Part of this scandal is that Ukraine is sitting on a huge amount of wealth which it cannot monetize,” he observed and stressed “this must be addressed.”
According to Hoyer, the main uncertainty for investors and Ukraine is whether the conflict will be resolved decisively or become protracted. According to US intelligence, the war in Ukraine will be prolonged.
The National Bank of Ukraine estimates that approximately one third of companies have closed, while Minister of Finance Sergii Marchenko noted on Wednesday that GDP is expected to drop 45% this year.According to estimates, roughly 11 million Ukrainians have been displaced and close to 6 million have fled the country. The war left infrastructure and cities destroyed, further disrupting economic activity in Ukraine.