Business & Economy

IMF, Ukraine reach agreement for $15.6 billion loan program

Washington, Mar 21 (EFE).- The International Monetary Fund (IMF) and the Ukrainian authorities have reached a staff-level agreement for a four-year loan package worth $15.6 billion, the organization announced Tuesday.

“The staff-level agreement reflects the IMF’s continued commitment to support Ukraine and is expected to help mobilize large-scale concessional financing from Ukraine’s international donors and partners over the duration of the program,” IMF Ukraine mission chief Gavin Gray said in a statement.

The program is still subject to approval by the IMF’s Executive Board.

Gray said that the Fund expected a gradual economic recovery of the European country in the coming quarters, although he warned that conditions could change quickly if Russia’s war on Ukraine escalated further.

According to Gray, the IMF estimates that Ukraine’s gross domestic product in 2023 will change between -3 percent to +1 percent, meaning that its economy could experience a slowdown this year as well.

“The overarching goals of the authorities’ program are to sustain economic and financial stability in circumstances of exceptionally high uncertainty, restore debt sustainability, and support Ukraine’s recovery on the path toward EU accession in the post-war period,” Gray added.

US Treasury Secretary Janet Yellen welcomed the news, noting that “an ambitious and appropriately conditioned IMF program is critical to underpin Ukraine’s reform efforts.”

“It will also bolster the economic assistance that the United States and our partners have provided that is funding essential services like schools, hospitals, and first responders, and which is offering vital support to the Ukrainian economy,” she added. EFE


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