IMF Provides $1.1bn in Critical Funding to Ukraine Amid Ongoing Crisis

IMF Provides $1.1bn in Critical Funding to Ukraine Amid Ongoing Crisis

The International Monetary Fund has approved a $1.1bn disbursement to Ukraine as part of a four-year loan program aimed at providing budgetary support.

This decision comes amid continued Russian aggression and follows the IMF’s recent review of the programme, which has an overall value of $15.5bn.

In a statement on Friday, IMF Managing Director, Kristalina Georgieva, acknowledged the severe economic and social impact of the conflict on Ukraine, praising the country’s authorities for maintaining macroeconomic stability through skilled policymaking and external assistance.

“Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine.

Despite the war, macroeconomic stability is being preserved through skilful policymaking by the Ukrainian authorities as well as substantial external support,” Georgieva said as reported by AFP.

The latest disbursement brings the total amount released to Ukraine under the program to $9.8bn since its inception in March 2023.

Ukrainian Prime Minister, Denys Shmygal, expressed gratitude for the IMF’s consistent support, emphasising its significance during challenging times.

Despite ongoing challenges, including attacks on critical energy infrastructure and a strained labour market, Ukraine’s economy has demonstrated resilience.

However, Georgieva noted that risks remain significant, highlighting the importance of preparedness and contingency planning to address potential economic shocks.

This development comes ahead of the inauguration of US President-elect Donald Trump on January 20, who has expressed scepticism about US financial support for the war in Ukraine and has pledged to expedite efforts to end the conflict.