The IMF is considering providing multi-year aid to Ukraine in the amount of up to $16 billion — Bloomberg
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The International Monetary Fund is studying a multi-year aid package for Ukraine worth up to $16 billion, which will help cover the country’s needs and become a catalyst for increased international financing. This is reported by Bloomberg with reference to sources familiar with the matter.
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Assistance program
According to the interlocutors, the implementation of the aid program depends on a number of conditions, including the support of the “Big Seven” countries, as well as donors and creditors of Ukraine, which guarantee the stability of the country’s debt.
The plan will also require changes to the IMF’s lending rules so that the fund can provide loans to the war-torn country, and the government in Kyiv will have to undertake a number of political measures, in addition to the successful completion of the IMF’s four-month program approved last year.
Read also: IMF expects inflation to slow down to 22% and GDP growth in Ukraine in 2023 – memorandum
Details
In the case of approval of the program, designed for three to four years — with a total cost of $14 to $16 billion, payment of $5 to $7 billion will be provided in the first hour.
According to the sources, it is hoped that the plan will be agreed upon by the end of March, and the first tranche, in the best case, will arrive already in April. It is expected that this will help increase the financial support of Ukraine from state and private creditors.
IMF commentary
In response to Bloomberg’s questions, the IMF said that the fund continues to closely cooperate with Ukraine. Also, this cooperation “can pave the way to a full-fledged program.” At the same time, the IMF did not reveal any details, such as the potential size of the loan.
Read also: The Government of Ukraine promised the IMF to resume tax audits of businesses and cancel a number of benefits
If the plan does not receive support
According to Bloomberg, if the plan does not receive support from a sufficient number of IMF member countries, the fund can support Ukraine with the Rapid Financing Instrument program for $1.3 billion.
According to experts, Ukraine will probably need another $8 billion to restore critical infrastructure damaged by Russian missile attacks.
Author: 
Roman Myronchuk
Source: Ministry of Finance
Views: 4
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