IMF approves ‘critical’ $1.4bn aid to Ukraine

The Council of the International Monetary Fund (IMF) approved this Wednesday (9) emergency financing of US$ 1.4 billion for Ukraine, in order to help the country, victim of a “huge humanitarian and economic crisis” caused by the Russian invasion.

IMF Managing Director Kristalina Georgieva said the package will provide “critical financial support” which, in turn, will catalyze a “large-scale mobilization” of funds needed to “mitigate the economic impacts of the war”.

“The need for funding is important, urgent, and could increase considerably as the war continues,” he said.

According to Georgieva, Ukraine will experience a “deep recession” this year. Before the war, the IMF estimated that the Ukrainian economy would grow by 3.6% for 2022.

Ukraine, one of Europe’s poorest countries, was already benefiting from an IMF aid program.

However, this so-called “confirmation” agreement, which provided for a disbursement of US$ 2.2 billion until the end of June, was annulled at the request of the Ukrainian authorities.

The IMF chief also highlighted that “the emergency policy response of the Ukrainian authorities has been remarkable”, adding that Ukraine “has kept up to date on all debt obligations”.

Two weeks after the start of the Russian invasion of Ukraine, the human and material losses caused by the most serious military conflict in Europe today, from which more than two million people have fled, are very high.