Ukraine and IMF reach preliminary $15.6 billion funding agreement

·2 min read
Ukraine and the IMF agree on a new program
Ukraine and the IMF agree on a new program

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The money will be spent on supporting Ukraine’s fiscal, external borrowing, price, and financial stability, and support its ongoing gradual economic recovery, while promoting long-term growth in the context of post-war reconstruction and Kyiv’s path to EU membership.

“I am pleased to announce that the IMF team has reached staff-level agreement with the Ukrainian authorities on a 4-year IMF-supported program, with access requested of SDR 11.6 billion (about US$15.6 billion), or 577 percent of Ukraine’s quota,” said IMF’s envoy to Ukraine, Gavin Gray.

“This agreement is subject to approval by the IMF Executive Board, with Board consideration expected in the coming weeks.

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The governor of the National Bank of Ukraine (NBU), Andriy Pyshny, also confirmed the draft has been agreed upon.

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“We reached an agreement at the staff level on a new expanded funding program,” Pyshny said.

“In the coming weeks, we expect the final approval on the deal by the IMF Board of Directors.”

Read also: Ukraine’s central bank expects two-stage program with IMF

On Feb 21, 2022, IMF Executive Director Kristalina Georgieva said the fund was ready to provide substantial economic support to Ukraine under a new full-fledged loan program.

Ukraine’s PM Denys Shmyhal said that Ukraine expects to receive more than $15 billion from IMF.

Read also: IMF’s new $15 billion program for Ukraine nearing conclusion

On Jan 26, Bloomberg reported that the IMF was considering providing assistance to Ukraine in the amount of up to $16 billion, spread out over several years.

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