IMF approves record $15.6 billion aid program for Ukraine

1 April, 12:33 AM
IMF (Photo:REUTERS/Johannes P. Christo)

IMF (Photo:REUTERS/Johannes P. Christo)

The Executive Board of the International Monetary Fund (IMF) has approved a four-year $15.6 billion financing program for Ukraine, which will allow Kyiv to meet its urgent financing needs amid Russia’s full-scale invasion, Reuters reported on March 31.

Ukrainian PM Denys Shmyhal said that the country will receive the first tranche of more than $2.7 billion in near future.

“The IMF funds will help the government finance all critical spending and maintain macro-financial stability,” Shmyhal wrote in a Telegram post.

“The program will consist of two parts: the first is urgent financing of our victory in the war. The second part is the post-war reconstruction and transformation of Ukraine.”

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The IMF press service clarified that the decision is part of a total $115 billion support package that includes the IMF loan, $80 billion in pledges from other countries, and $20 in debt relief.

Ukrainian President Volodymyr Zelenskyy thanked the IMF and its Managin Director, Kristalina Georgieva, for approving the program.

“Together we support the Ukrainian economy and move forward to victory,” Zelenskyy said in a Twitter post.

On March 21, the IMF announced that it had reached an agreement at the staff level on a new four-year EFF program for Ukraine worth SDR 11.6 billion (about $15.6 billion).

The program is supposed to be divided into two stages. The first is aimed at maintaining fiscal and financial stability, designed for 12-18 months, while the second stage is aimed at bootstrapping growth and EU integration through major structural reforms.

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