IMF Board approves $1.3b financing for Ukraine

The International Monetary Fund (IMF) Friday October 7, 2022 approved financing to the tune of $1.3 billion for Ukraine.

According to the Fund, the disbursement is under the new food shock window of its Rapid Financing Instrument.

Ukraine has been engaged in a war for seven months now after its territories were invaded by Russia. The conflict has impacted Ukraine economically, and the IMF says the war has resulted among other things in large and urgent fiscal and external financing needs for the country.

“The Ukrainian authorities deserve considerable credit for having maintained an important degree of macro-financial stability in these extremely challenging circumstances,” the Fund says.

As a result of the war, Ukraine’s GDP is projected to contract by 35 per cent in 2022 relative to 2021.

The IMF notes that this disbursement under the RFI (equivalent to 50 per cent of Ukraine’s quota in the IMF) will help meet urgent balance of payment needs, including due to a large cereal export shortfall, while playing a catalytic role for further financial support from Ukraine’s creditors and donors.

The IMF Executive Board reiterated its strong support for the Ukrainian people.

By Emmanuel K Dogbevi