The International Monetary Fund’s (IMF) executive board approved a US$1.1 billion disbursement to Ukraine on Friday (Dec 20) as part of an ongoing loan programme to provide budget support.
The approval bolsters Ukraine as it faces continued Russian attacks, and comes just over a month after staff at IMF completed the sixth review of an existing four-year programme worth some US$15.5 billion.
“Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine,” IMF managing director Kristalina Georgieva said in a statement announcing the decision.
“Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support.”
Friday’s payout brings the total disbursed under the programme since it was signed in March 2023 to around US$9.8 billion, according to the IMF.
“I am grateful to the team of the IMF for their consistent assistance to our country in difficult times,” Ukrainian Prime Minister Denys Shmygal wrote in a message on his Telegram social media account.
Friday’s board approval means Kyiv will receive the money before US president-elect Donald Trump takes office on Jan 20.
Trump has repeatedly criticised US spending on the war and pledged to end the conflict quickly, raising concern among US allies that Ukraine may have to concede significant amounts of its territory to Russia.
Ukraine’s economy “has remained resilient… although risks are tilted to the downside due to headwinds from attacks on energy infrastructure and a tight labor market,” Georgieva said.
“Preparedness and contingency planning are key to enable appropriate policy action should risks materialise,” she added. AFP
Source: The Business Times
