NEWS STORY : IMF Agrees $15.6 Billion Loan to Ukraine
STORY
The International Monetary Fund (IMF) has agreed a $15.6 billion (£12.8 billion) loan to Ukraine to help it rebuild following the military invasion of the country by Russia. The loan agreement comes following a change of policy in the IMF which previously limited loans to countries with high levels of uncertainty, with a spokesperson from the international economic organisation saying:
“The programme has been designed in line with the new fund’s policy on lending under exceptionally high uncertainty, and strong financing assurances are expected from donors, including the G7 and EU”.
Denys Shmyhal, the Prime Minister of Ukraine, said in a statement:
“In conditions of a record budget deficit, this program will help us finance all critical expenditure and ensure macroeconomic stability and strengthen our interaction with other international partners”.
Gavin Gray who led the IMF loan team said:
“In addition to the horrific humanitarian toll, Russia’s invasion of Ukraine continues to have a devastating impact on the economy: activity contracted by 30 percent in 2022, a large share of the capital stock has been destroyed, and poverty levels have climbed. Acute macroeconomic challenges persist due to the scale of the shock and the expansion of the fiscal deficit. The authorities have nevertheless managed to maintain macroeconomic and financial stability, thanks to substantial external support and skillful policymaking”.
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