NBU, IMF negotiate special account for funding Ukraine

30 March, 11:57 AM
NBU (Photo:NBU / Flickr)

NBU (Photo:NBU / Flickr)

National Bank of Ukraine Governor Kyrylo Shevchenko has discussed with representatives of the International Monetary Fund the provision of further monetary aid from abroad in the wake of Russia’s full-scale invasion of the country.

This could include the creation of a special account for distributing funds for Ukraine, its economy and its financial needs, the NBU press service has reported.

This account will likely be structured as a stand-alone fund managed by the IMF, Ukraine’s long-term partner. It will likely become a bilateral vehicle intended to help Ukraine financially, the NBU said.

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The NBU also said it had informed the IMF about its own efforts to promote the introduction of new sanctions against Russia and its economy. Prior to that, NBU warned against the use of Russian rubles on Ukrainian territories that Russia might temporarily control.

Right now, the NBU’s key interest rate is set at 10%, with inflation at 10.7%.

The NBU recently provided UAH 13.2 billion, or $455 million in funds to the Ukrainian army.

Earlier, Sergiy Nikolaychuk, the deputy head of the NBU, said Ukraine will need a special international fund to provide financial support for the country’s post-war recovery.

Meanwhile, NBU chief Shevchenko mentioned that seized Russian funds, like central bank reserves, might be used to fund Ukraine’s post-war economic recovery and reform effort.

Ukrainian Prime Minister Denys Shmygal on March 29 said country’s GDP may experience a 35% contraction this year due to the significant escalation of Russia’s ongoing war against Ukraine. 

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