The IMF approves a financing line of 14,366 million euros for Ukraine


The International Monetary Fund (IMF) has approved this Friday a line of financing for Ukraine of 15,600 million dollars (14,366 million euros) as part of a broader package of 115,000 million dollars (105,900 million euros) created in response to the Russian invasion.

The objective of the new program, with a duration of 48 months, is “to maintain financial and economic stability in times of exceptional uncertainty”, as well as to contribute to the sustainability of the Ukrainian debt. This plan has received the backing of the G7, the European Union and other donors to ensure the viability of the Ukrainian state in the medium term.

In the first part of the program, scheduled for 2023 and 2024, the focus will be on “implementing a robust budget and increasing income”, controlling inflation and the currency exchange rate, and contributing to good long-term financial health. through a deeper analysis of banking entities and ensuring the independence of the central bank.

As for the second phase, this will focus more on structural reforms for macroeconomic stability, post-war reconstruction and strengthening long-term growth prospects. These objectives should be aligned with the milestones required for Ukraine’s accession to the European Union.

“The Russian invasion of Ukraine continues to have a devastating social and economic impact. Activity contracted enormously last year, and a large part of the country’s capital has been destroyed and poverty is on the rise,” said the first deputy managing director of the International Monetary Fund, Gita Gopinath.

“Nevertheless, the authorities have been successful, in general, in safeguarding financial and macroeconomic stability thanks to the good design of the policies implemented and the important external support,” he added.

On the other hand, the IMF has predicted that Ukrainian GDP will be able to grow by 1% in the best of cases in 2023. In the most pessimistic scenario, this could fall to as much as 3%, a figure much lower than the 30.3% collapse registered in 2022.