Bloomberg: IMF exploring new Ukraine aid package worth up to $16 billion

The International Monetary Fund is considering the possibility of providing Ukraine with a multiyear aid package worth as much as $16 billion to help cover the country’s needs. It might also serve as a catalyst for more international funding while Ukraine tries to repel Russian forces, people familiar with the matter told Bloomberg.

Whether the program is implemented hinges on various conditions, including an endorsement from G7 nations and Ukraine’s donors and creditors ensuring the sustainability of the country’s debt.

The plan, however, would also require changes to IMF lending rules so the fund could lend to the war-torn country, and the government in Kyiv would need to commit to a series of policies on top of successfully completing a four-month non-cash IMF program approved last year.

If approved, the three- to four-year program — worth $14 billion to $16 billion total — will total a disbursement of $5 billion to $7 billion in the first year. "There’s hope the plan will be agreed on by the end of March, with the first tranche coming as early as in April in the best-case scenario, they said. It’s also expected to help propel more financial support for the country from public and private creditors," Bloomberg reports.