The Executive Board of the International Monetary Fund (IMF) approved on Wednesday (9) the disbursement of US$ 1.4 billion in emergency aid to Ukraine, and warned that the war would trigger a “deep recession” in the country.
The amount approved by the Fund corresponds to that requested by the Ukrainian government and will serve to “mitigate the economic impact” of the war initiated by Russia, the IMF said in a statement. “Funding needs are large, urgent and could grow significantly as the war continues,” the institution’s managing director, Kristalina Georgieva, said in the note.
“The tragic loss of life, massive flows of refugees and massive destruction of infrastructure and productive capacity are causing serious human suffering and will lead to a deep recession this year,” he warned.
The IMF explained that the Ukrainian authorities canceled the loan program they had with the agency, reached in 2020 and of which there was still about US$ 2.2 billion to be transferred.
In this regard, Ukraine expressed “its intention to work with the IMF” to replace that program with a more “appropriate” one in light of the current situation, which aims at “rehabilitation and growth, when conditions allow”, explained the Fund.
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