The International Monetary Fund (IMF) has approved a $1.1 billion disbursement to Ukraine as part of a four-year loan program aimed at providing essential budgetary support. This decision follows a recent review of the program, which has an overall value of $15.5 billion.
IMF Managing Director Kristalina Georgieva, in a statement on Friday, acknowledged the severe economic and social impact of the ongoing war with Russia on Ukraine. She commended the Ukrainian authorities for maintaining macroeconomic stability despite the war, noting that their skilled policymaking, combined with substantial external support, has played a pivotal role in preserving stability during these challenging times.
“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 skillful policymaking by the Ukrainian authorities as well as substantial external support,” Georgieva said, as reported by AFP.
The $1.1 billion disbursement brings the total amount released to Ukraine under the program to $9.8 billion since its inception in March 2023. Ukrainian Prime Minister Denys Shmygal expressed gratitude for the IMF’s consistent support, underscoring the importance of this financial assistance in navigating the challenges posed by the conflict.
Despite attacks on critical energy infrastructure and a strained labor market, Ukraine’s economy has shown remarkable resilience. However, Georgieva highlighted that significant risks remain, stressing the importance of preparedness and contingency planning to mitigate potential economic shocks.
This financial assistance from the IMF comes at a crucial time, as concerns grow among Ukraine’s allies about the potential implications for the country’s territorial integrity. It also precedes the inauguration of U.S. President-elect Donald Trump on January 20, who has voiced skepticism about U.S. financial support for Ukraine’s war efforts and has pledged to push for an expedited end to the conflict.
