March 22, 2023 (MLN):The International Monetary Fund (IMF) has agreed on a loan package worth approximately $15.6 billion with the Ukrainian authorities.
The loan is aimed at supporting Ukraine's economy, which has been severely affected by the ongoing conflict with Russian troops since February last year.
The IMF Ukraine mission chief, Gavin Gray, highlighted the devastating impact of the war on the country's economy, including the contraction of economic activity by 30% last year, the rise in poverty, and the destruction of much of the capital stock.
Gray further stated that the loan would support Ukraine's gradual economic recovery while promoting long-term growth in the context of post-war reconstruction.
The four-year plan, which is subject to approval from the IMF board, is expected to help Ukraine on its path to European Union accession.
The IMF predicts that the country's economy will slowly recover over the coming quarters, although acute macroeconomic challenges persist due to the scale of the shock and the expansion of the fiscal deficit.
The board is expected to consider the bailout in the coming weeks, according to the IMF.
This loan could prove to be a lifeline for Ukraine, providing much-needed support to its economy and helping the country to rebuild after the devastating impact of the conflict with Russia.
