IMF approves $15.6 billion loan for Ukraine

IMF approves $15.6 billion loan for Ukraine

A four-year $15.6 billion loan program for Ukraine is being approved by the International Monetary Fund's executive board, part of a $115 billion package to support the economy.

The decision clears the way for an immediate disbursement of $2.7 billion to Kyiv and requires Ukraine to carry out ambitious reforms, especially in the energy sector, the fund said.

The extended fund facility loan is the first major conventional financing programme approved by the International Monetary Fund for a country involved in a large-scale war.

Ukraine s previous $5 billion long-term IMF programme was cancelled in March 2022 when the fund provided $1.4 billion in emergency financing with few conditions. Another $1.3 billion was provided by a food shock window program in October.

An official for the International Monetary Fund said the package includes the IMF loan, $80 billion in pledges for grants and concessional loans from multilateral institutions and other countries, and $20 billion worth of debt relief commitments.

Over the next two years, Ukraine must meet certain conditions, including tax revenue, exchange rate stability, and strengthen anti-corruption efforts.

The IMF praised Ukrainian authorities for maintaining macroeconomic and financial stability despite the strains of the war as a result of Russia's invasion of Ukraine.

The Ukrainian president, Volodymyr Zelenskiy, welcomed the new funding.

He said it was an important part of our fight against Russian aggression. The US Treasury secretary Janet Yellen, who pushed hard for the past year to secure the International Monetary Fund funding package, said it would help secure the country's economic and financial stability and set the foundation for long-term reconstruction.