Ukraine has obtained the primary tranche of $2.7 billion from a brand new International Monetary Fund (IMF) program, Ukrainian Finance Minister Sergii Marchenko mentioned in a tweet Monday.
The IMF, which usually makes emergency loans to international locations in disaster, on Friday permitted a brand new four-year prolonged association beneath the Extended Fund Facility (EFF) of round $15.6 billion as a part of a $115 billion complete assist bundle for Ukraine.
The program goals to “anchor insurance policies that maintain fiscal, exterior, worth and monetary stability and assist financial restoration, whereas enhancing governance and strengthening establishments to advertise long-term development in the context of post-war reconstruction and Ukraine’s path to EU accession,” the IMF mentioned in a statement.
The program additionally helps Ukraine to hold out “extra bold structural reforms,” it mentioned.
The Extended Fund Facility (EFF) mortgage is the primary main typical financing program permitted by the IMF for a rustic concerned in a large-scale war, Reuters reported.
The dangers to the association are “exceptionally excessive,” mentioned Gita Gopinath, first deputy managing director of the worldwide lender.
“The success of this system will depend on the dimensions, composition, and timing of exterior financing on concessional phrases to assist shut fiscal and exterior financing gaps and restore debt sustainability on a forward-looking foundation beneath the baseline and draw back situations,” she added.
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