WASHINGTON听–听The International Monetary Fund said on Tuesday it had reached a听蝉迟补蹿蹿-level听补驳谤别别尘别苍迟听with听鲍办谤补颈苍别听for a four-year financing package worth about $15.6 billion, offering funds the country needs as it continues to defend against Russia’s invasion.
The听补驳谤别别尘别苍迟, which must still be ratified by the听滨惭贵‘s board, takes into consideration听鲍办谤补颈苍别‘s path to accession to the European Union after the war. The fund said its executive board was expected to discuss approval in the coming weeks.
“The overarching goals of the authorities’听辫谤辞驳谤补尘听are to sustain economic and financial stability in circumstances of exceptionally high uncertainty, restore debt sustainability, and support听鲍办谤补颈苍别‘s recovery on the path toward EU accession in the post-war period,”听滨惭贵聽official Gavin Gray said in a statement announcing the听补驳谤别别尘别苍迟.
滨惭贵听蝉迟补蹿蹿听on Tuesday briefed board members on the听补驳谤别别尘别苍迟听– which would be听鲍办谤补颈苍别‘s biggest loan package since Russia’s full-scale invasion on Feb. 24, 2022 – and the board was supportive, a source familiar with the matter said.
The global lender said the听补驳谤别别尘别苍迟听was expected to help unleash large-scale financing for听鲍办谤补颈苍别听from international donors and partners, but gave no details. Typically听滨惭贵聽loans unlock support from the World Bank and other lenders.
颁补濒肠耻濒补迟颈辞苍蝉听聽estimated the cost of reconstruction in the hundreds of billions of dollars.
“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,” said Gray.
滨惭贵听蝉迟补蹿蹿听currently expected the change in听鲍办谤补颈苍别‘s real gross domestic product for 2023 to range from -3% to +1%, Gray added.
Ukrainian Prime Minister Denys Shmyhal hailed the听补驳谤别别尘别苍迟听and thanked the听滨惭贵聽for its support.
“In conditions of a record budget deficit, this听辫谤辞驳谤补尘听will help us finance all critical expenditure and ensure macroeconomic stability and strengthen our interaction with other international partners,” he said in a message on Telegram.
US Treasury Secretary Janet Yellen, who paid a 聽last month, welcomed the deal after months of pushing for the听滨惭贵聽to move forward with a new financing package for听鲍办谤补颈苍别.
“An ambitious and appropriately conditioned听滨惭贵聽辫谤辞驳谤补尘听is critical to underpin听鲍办谤补颈苍别‘s reform efforts, including to strengthen good governance and address risks of corruption, and provide much needed financial support,” she said in a statement.
The US is the听滨惭贵‘s largest shareholder.
If approved, as expected, the听鲍办谤补颈苍别听辫谤辞驳谤补尘听would be the听滨惭贵‘s biggest loan to a country involved in an active conflict.
The fund last week聽聽to allow new loan听辫谤辞驳谤补尘s for countries facing “exceptionally high uncertainty”,听without naming听鲍办谤补颈苍别. – Reuters
