IMF approves $880 million for Ukraine
The International Monetary Fund has approved the next disbursement to Ukraine within a $15.6-billion loan program, a move that bolsters the nation’s finances as aid from the US, its key ally, remains stalled, Bloomberg writes.
The lender’s executive board met on Thursday to give final assent to providing about $880 million in the latest installment to Kyiv. This is the first of four tranches for a total amount of more than $5.3 billion scheduled to be released this year.
The IMF continues to lend to Ukraine under a four-year loan package sealed a year ago as the country continues to battle the Russian invasion that began more than two years ago. Support continues despite risks to the program stemming from uncertainty over assistance from the US.
“Continued support from all external partners is essential,” IMF Ukraine mission chief Gavin Gray said at a news conference on Thursday. “Without those resources, the hard-won macroeconomic stabilization gains could be jeopardized.”
The move will help bolster Ukraine’s international reserves well above $40 billion, a level the nation hasn’t previously seen in its history. The country’s central bank expects $10 billion in foreign aid by May including the disbursement from the IMF.
But the nation is facing a quandary because it has so far failed to receive more than $61 billion in an aid from the US. These funds encompassing military assistance have been held up in Congress over demands by Republicans that US immigration policy be addressed first.
The IMF is scheduled to review another disbursement of funds for Ukraine in mid June. Should the government meet several conditions, it will receive more than $2.2 billion in the next installment.
