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IMF approves $700 million loan tranche to Ukraine, extends stand-by program through June 2022

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IMF approves $700 million loan tranche to Ukraine, extends stand-by program through June 2022
(bank.gov.ua)

President Volodymyr Zelensky's government has secured the long-awaited new IMF loan tranche of nearly $700 million as well as the extension of its $5 billion stand-by program through June 2022.

The Washington-based organization said on Nov. 22 that the program is to help Ukraine address the effects of Covid-19 shock and continue its economic recovery.

The IMF had given Ukraine, one of Europe’s poorest countries, a loan deal last year as the country struggled through recession due to the coronavirus pandemic. But the loan disbursal has stalled due to concerns about reform progress and the independence of the central bank.

The latest agreement is a boost for Zelensky’s government struggling to meet reform targets set by the lender, such as strengthening the anti-corruption framework and the judiciary.

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Asami Terajima

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Asami Terajima is a reporter at the Kyiv Independent covering Ukrainian military issues, front-line developments, and politics. She is the co-author of the weekly War Notes newsletter. She previously worked as a business reporter for the Kyiv Post focusing on international trade, infrastructure, investment, and energy. Originally from Japan, Terajima moved to Ukraine during childhood and completed her bachelor’s degree in Business Administration in the U.S. She is the winner of the Thomson Reuters Foundation's Kurt Schork Award in International Journalism 2023 (Local Reporter category) and the George Weidenfeld Prize, awarded as part of Germany's Axel Springer Prize 2023. She was also featured in the Media Development Foundation’s “25 under 25: Young and Bold” 2023 list of emerging media makers in Ukraine.

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