The International Monetary Fund said on Tuesday it has
reached a staff-level agreement with Ukraine for a four-year
financing package worth about $15.6 billion, offering the
country needed funds as it continues its battle against Russia's
invasion.
The agreement, which must still be ratified by the IMF's
board, follows months of negotiations between IMF staff and
Ukrainian authorities. The board is expected to discuss approval
in the coming weeks.
The Fund said the agreement is expected to help unleash
large-scale financing for Ukraine from international donors and
partners.
"A gradual economic recovery is expected over the coming
quarters, as activity recovers from the severe damage to
critical infrastructure, although headwinds persist, including
the risk of further escalation in the conflict," IMF official
Gavin Gray said in a statement announcing the agreement.
IMF staff currently expect the change in Ukraine's real gross domestic for 2023 to range from -3% to +1%, Gray added. "An ambitious and appropriately conditioned IMF program is critical to underpin Ukraine’s reform efforts, including to strengthen good governance and address risks of corruption, and provide much needed financial support," U.S. Treasury Secretary Janet Yellen said in a statement.
The fund had last week changed a rule to allow new loan
programs for countries facing "exceptionally high uncertainty"
without naming Ukraine, which has been battling a Russian
invasion for more than a year.
(Reporting by Andrea Shalal and Rami Ayyub; additional
reporting by Rodrigo Campos; writing by Kanishka Singh; editing
by Tim Ahmann and Marguerita Choy)
