This is the first loan the International Monetary Fund will provide to a country at war.
The board of the International Monetary Fund approved a $15.6 billion four-year loan to Ukraine. On Friday, March 31, the Bloomberg report cited its own source.
This loan is the largest for Ukraine since Russia’s full-scale invasion on February 24, 2022, and is the first major package approved by the IMF for a country in active conflict.
The main objectives of the program are stated to be: supporting economic and financial stability in an environment of very high uncertainty, restoring long-term debt sustainability in both baseline and worsening scenarios, as well as promoting reforms which is helping to get Ukraine back on track. on joining the EU in the post-war period, added to the Foundation.
The loan program is designed for four years and will be divided into two phases. In the first phase, which lasts 12-18 months, Ukraine will take measures to strengthen fiscal, external, price and financial stability, including the elimination of monetary financing.
In the second phase, broader reforms will be implemented to enhance macroeconomic stability and support the country’s recovery and reconstruction, including within the framework of Ukraine’s goal of joining the European Union. During this period, Ukraine is expected to return to pre-war policy fundamentals, including a flexible exchange rate and inflation targeting regime, according to the IMF.
Ukrainian President Volodymyr Zelensky Twitter thanked the IMF for approving the program.
Staff projections for the Ukrainian economy this year range from a contraction of 3% to growth of 1% after a 30% contraction in 2022.
Recall that in the Memorandum with the IMF, within the framework of the new program, the Ukrainian authorities undertook to ensure tax revenues in the budget without making radical changes to the system.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.