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| IMF moves to disburse $900 million loan to Ukraine. (Source: Asiatimes) |
Accordingly, the above fund will allow the disbursement of 900 million USD to Kiev, after being approved by the IMF Executive Board. The Executive Board will review this agreement in the coming weeks.
Despite the conflict with Russia, Ukraine’s economy is performing better than expected and has met the necessary criteria of macroeconomic and financial stability, the IMF said, which has been maintained thanks to prudent policymaking and continued and timely external support.
With a new lending program to strengthen the economy, the IMF also raised its forecast for Ukraine's gross domestic product (GDP) growth this year from 1% to 3%, compared to the forecast range given in March 2023 of between minus 3% and growth of 1%.
However, the agency also said that challenges including humanitarian issues and damage caused by conflict will continue to impact the Eastern European country's economy.
According to the IMF, Ukraine's budget deficit remains high, requiring large financing needs to be covered by external grants and highly concessional loans.
In late March, the IMF approved a four-year loan program worth $15.6 billion for Ukraine under the Long-Term Support Facility (EFF), while also authorizing additional support of about $100 billion from donors.
The program aims to strengthen policies to ensure fiscal, foreign, price and financial sustainability and support Ukraine's economic recovery.
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