Ukraine and the International Monetary Fund agreed on a new package of financial assistance in the amount of 15 billion 600 million dollars. The support program is designed for four years. This is stated in the statement of the IMF, published on March 21.
The funds should contribute to the gradual growth of the Ukrainian economy for the post-war recovery of the country. The loan package, which still needs to be approved by the fund's executive board, will also support Ukraine on its way to joining the EU, the statement emphasizes.
The IMF claims that the agreement, which was the result of months of negotiations between the fund and the Ukrainian authorities, will help deploy large-scale financing of Ukraine from international donors and partners. IMF loans usually open up access to support from the World Bank and other lenders.
The Prime Minister of Ukraine, Denys Shmyhal, welcomed the agreement and thanked the IMF for its support. "In conditions of a record budget deficit, this program will help Ukraine finance all critical expenses and ensure macroeconomic stability, as well as strengthen cooperation with other international partners," Shmyhal wrote on his Telegram channel.
US Treasury Secretary Janet Yellen, who made a surprise visit to Ukraine last month, welcomed the deal after months of pushing for the IMF to offer a new financing package for Ukraine.
Last week, the fund changed its rules, allowing new credit programs for countries facing "an exceptionally high degree of uncertainty," without mentioning Ukraine.
If approved, the loan would be the largest IMF loan to a country involved in an active conflict.