- Ukraine is in discussions with the IMF to finalize by year’s end an agreement for a $15-$20 billion loan to support the recovery of its war-devastated economy.
- According to Kyrylo Shevchenko, governor of the National BankThe governor stated that Kyiv has already made its request to the IMF and is currently in discussions with the organization over the fresh funds.
- Through a Stand-By Arrangement (SBA) or an Extended Fund Facility, he expects Ukraine would receive up to $20 billion over two or three years (EFF). According to financial experts, Ukraine’s economy, which has been severely damaged by Russia’s invasion, would collapse by 35 to 45 per cent in 2022, resulting in a $5 billion monthly budget deficit.
Ukraine is in discussions with the IMF to finalize by year’s end an agreement for a $15-$20 billion loan to support the recovery of its war-devastated economy.
According to Kyrylo Shevchenko, governor of the National Bank
The governor stated that Kyiv has already made its request to the IMF and is currently in discussions with the organization over the fresh funds.
Through a Stand-By Arrangement (SBA) or an Extended Fund Facility, he expects Ukraine would receive up to $20 billion over two or three years (EFF).
According to financial experts, Ukraine’s economy, which has been severely damaged by Russia’s invasion, would collapse by 35 to 45 percent in 2022, resulting in a $5 billion monthly budget deficit. The country is therefore significantly dependent on foreign funding from its Western allies.
The head of the central bank stated that a new programme should include steps to help stabilise the economy. With a liberal exchange rate, no restrictions on the currency market, a decline in non-performing loans in the banking industry, and a balanced fiscal policy, pre-war conditions might be restored as a result.
As previously reported, a group of G7 and Paris Club creditors for Ukraine expressed their decision to halt principle and interest payments on bilateral obligations till the end of 2023, with the possibility of an additional one-year extension.
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