The Ukrainian authorities and IMF staff have reached a staff-level agreement on a set of macroeconomic and financial policies that would be supported by a new 48-month Extended Fund Facility (EFF) Arrangement. The IMF has come forward to help Ukraine, which is being destroyed by the war and will give a loan of 15.6 billion US dollars.
More than a year has passed since the war between Ukraine and Russia. Both countries have caused tremendous damage to each other, but neither of them is willing to take a single step back. Ukraine’s economy has been completely destroyed due to the war.
To help Ukraine, all the countries of the world are coming forward and providing financial support. Meanwhile, the International Monetary Fund (IMF) has agreed to provide a loan of 15.6 billion dollars to meet Ukraine’s financial needs.
“I am pleased to announce that the IMF team has reached staff-level agreement with the Ukrainian authorities on a 4-year IMF-supported program, with access requested of SDR 11.6 billion (about US$15.6 billion), or 577 percent of Ukraine’s quota,” IMF team lead Mr. Gavin Gray said in a statement. “This agreement is subject to approval by the IMF Executive Board, with Board consideration expected in the coming weeks,” he added.
Ukraine’s Finance Ministry announced on Wednesday that it had reached an agreement on a loan assistance program with the IMF, saying it would help Ukraine meet its post-war reconstruction needs while ensuring its macro-financial stability. The IMF said in a statement that its loan assistance program would last for four years, with an initial 18-month focus on bridging Ukraine’s massive budget deficit. Apart from this, attention will also be given to meet the needs related to pension, salary and basic services by printing new notes.
In the remaining period of this program, special emphasis will be given to Ukraine’s membership in the European Union and reconstruction after the end of the war. This aid program with concessional financing is yet to be approved by the IMF’s Board of Directors.
After Russia’s invasion of Ukraine in February 2022, its military spending has risen sharply, while the size of its economy shrank by nearly 30 percent last year.
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