IMF reaches staff-level agreement with Ukraine for $15.6 billion program

The International Monetary Fund (IMF) said on March 21 it had reached a staff-level agreement with Ukraine for a four-year financing package worth about $15.6 billion. The aid aims to anchor the country's policies that sustain fiscal, external, price and financial stability in Ukraine.

The agreement, which the IMF's board must still ratify, follows months of negotiations between IMF staff and Ukrainian authorities. The IMF said its executive board is expected to discuss approval in the coming weeks.

“In addition to the horrific humanitarian toll, Russia’s invasion of Ukraine continues to have a devastating impact on the economy: activity contracted by 30 percent in 2022, a large share of the capital stock has been destroyed, and poverty levels have climbed," Gavin Gray, the IMF's Mission Chief for Ukraine, said in a statement.

IMF staff currently expect the change in Ukraine's real gross domestic for 2023 to range from -3% to +1%, according to Gray.

Ukrainian Prime Minister Denys Shmyhal praised the agreement and thanked the IMF for its support. "In conditions of a record budget deficit, this program will help us finance all critical expenditure and ensure macroeconomic stability and strengthen our interaction with other international partners," he said on Telegram.

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The Kyiv Independent