Washington: 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)
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