The Board of Directors of the International Monetary Fund (IMF) on Friday ratified the $15.6 billion aid package signed on March 21 with the Ukrainian government, paving the way for the disbursement of the first $2.7 billion tranche. A four-year program should provide an opportunity “To support the gradual recovery of the economy while creating the conditions for long-term growth in the context of post-conflict reconstruction and on the path to membership in the European Union.” (EU), the IMF reminded in a press release. This support is part of an overall financial assistance program of 115 billion dollars, of which 2 billion is the partial repayment of the existing debt.
The remaining 80 billion will be provided “by bilateral and multilateral donors in the form of grants for 20 billion dollars, the remaining 60 billion dollars in the form of concessional loans,” the IMF official said. “Today’s announcement is part of a comprehensive strategy that has been carefully constructed in cooperation with the Ukrainian authorities. The first step was the emergency funding provided last year.”detailed Gavin Gray, head of mission on the ground, during a virtual press briefing.
The new plan should initially help the Ukrainian government guarantee a “The solid budget of 2023”. making it possible to strengthen the fiscal resources of the state while helping to limit inflation. The goal of the second phase will be to implement the necessary structural reforms “to ensure macroeconomic stability and support post-war recovery and reconstruction”.
Ukraine has received significant support since the beginning of the conflict on February 24, 2022, both from the World Bank, which has already provided it with more than $20 billion in loans or donations, and the United States, which has given it more than $110 billion. by integrating military support. A significant portion of these funds have helped maintain public services and pay the salaries of civil servants, as well as provide care for internally displaced persons. The IMF expects a partial and gradual economic recovery in Ukraine this year, particularly thanks to the preservation of key infrastructure, such as the electricity grid, which is still being targeted by Russia.
Source: Le Figaro
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