The International Monetary Fund has said its board has approved a four-year £12.6 billion ($15.6 billion) loan program for Ukraine as part of a global £93 billion ($115 billion) package.
In its press release published on 31 March, they wrote that the loan was necessary since “Russia’s invasion of Ukraine continues to have a devastating economic and social impact.”
“Ukraine’s EFF-supported program aims to anchor policies that sustain fiscal, external, price and financial stability and support economic recovery, while enhancing governance and strengthening institutions to promote long-term growth in the context of post-war reconstruction and Ukraine’s path to EU accession,” according to the IMF statement.
The authorities’ program comprises two phases. The first phase (2023-24) will focus on implementing a robust budget for 2023, sustaining disinflation and exchange rate stability, bolstering financial stability, and continuing governance and anti-corruption reforms.
The second phase will emphasize ambitious structural reforms to support recovery, early post-war reconstruction, and long-term growth in line with Ukraine’s EU accession goals.
The approval of the loan is “expected to mobilize large-scale concessional financing from Ukraine’s international donors and partners, to help resolve Ukraine’s balance of payments problem, attain medium-term external viability, and restore debt sustainability on a forward-looking basis in both a baseline and downside scenario”.
