The IMF announced that it has reached an agreement with Ukraine on a review of its lending programme that paves the way for an additional $1.1 billion. The funds are badly needed for the war-torn country, AFP reported.
The swift agreement, which comes just two months after the last one, will provide Kiev with a large infusion of funds amid Russia's ongoing assault on the country. The war entered its 1,000th day on November 19.
It should also ensure Ukraine gets the money before US President-elect Donald Trump takes office in January.
The Republican has repeatedly promised to end the war but has yet to provide details on how he intends to do so. This has heightened concerns among US NATO allies that Ukraine may have to cede significant parts of its territory to Russia.
The International Monetary Fund program "continues to provide a strong anchor for the authorities' economic program at a time of extreme uncertainty," IMF mission chief in Ukraine Gavin Gray said at the end of a weeklong visit to the country.
"Programme implementation remains robust thanks to the authorities' prudent policy, with all quantitative performance criteria met as of end-September, as well as the structural criteria to be met in this review," he added.
The IMF's four-year programme is worth more than $15 billion.
Assuming that the IMF Executive Board approves the sixth review, which is likely to happen in the coming weeks, the total amount disbursed will reach around USD 9.8 billion. That is approximately two thirds of the total.
The IMF said it expects Ukraine's real GDP growth to reach 4% this year, then slow to 2.5-3.5% in 2025, "reflecting headwinds from energy infrastructure damage and labor shortages."
The country's inflation rose to 9.7 percent year-on-year in October, and gross international foreign exchange reserves reached $36.6 billion at the end of last month, "supported by continued strong external official support," the report added.
But the IMF warned that "risks remain extremely high given uncertainties about the intensity and duration of the war, including from ongoing attacks on energy infrastructure." | BGNES
