The International Monetary Fund’s board on Wednesday approved $1.4 billion in emergency financial assistance to help Ukraine confront a “massive humanitarian and economic crisis” caused by Russia’s two-week offensive.
Fund Director-General Kristalina Georgieva said that this immediate assistance will provide Kiev with “critical financial support” that will “enable it to meet the urgent needs of the balance of payments resulting from the consequences of the war.”
She added that the fund also hopes that this assistance will act as a “catalyst” for other financial partners, warning that this year Ukraine’s economy will experience a “deep recession”.
Before the Russian attack, which began on February 24, the IMF had expected the Ukrainian economy to grow in 2022 by 3.6%.
And Ukraine, one of the poorest countries in Europe, was benefiting from an aid program from the International Monetary Fund before the Russian attack.
Kiev was supposed to get $ 2.2 billion under this program by the end of June, but the fund canceled this program at the request of the Ukrainian government.
Georgieva said Ukrainian officials “expressed their desire to work with the International Monetary Fund to design an appropriate economic program aimed at recovery and growth, when conditions permit.”
“The tragic loss of life, the massive influx of refugees and the massive destruction of infrastructure and production capacity are causing severe human suffering and will lead to a deep recession this year,” the Director-General of the Fund warned.
But Georgieva praised the performance of the Kyiv government since the attack began, saying that “the emergency political response of the Ukrainian authorities has been remarkable.”
The Director-General of the Fund reminded that Ukraine had “fulfilled all its debt obligations” and placed restrictions on capital “to maintain the availability of foreign exchange reserves and reduce uncertainty regarding the exchange rate.”
Georgieva also noted the exceptional measures taken by the Central Bank of Ukraine since the attack began.
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