Ukraine to receive nearly $900 million from IMF as U.S. aid remains on hold - Bloomberg
Kyiv • UNN
Ukraine is close to receiving $900 million from the IMF as the next loan tranche to help finance its defense against Russia and meet its debt obligations.
Ukraine is close to ratifying an agreement with the International Monetary Fund to receive the next $900 million disbursement from a $15.6 billion loan. Bloomberg News reports UNN, citing its own sources .
Details
According to the publication, Ukraine expects to agree on a financial tranche from the IMF next Thursday. It is noted that this agreement is part of a backup plan if the United States is unable to provide assistance. Officials with knowledge of the negotiations told the publication, but since the deal has not yet been finalized, they wished to remain anonymous.
It is noted that this agreement has yet to be ratified by the fund's executive board. However, the sources added that such steps are almost always understood without problems.
Officials also said that the IMF team headed by mission chief Gavin Gray, which is assessing whether Ukraine has met the conditions for the loan, will make its assessment and announcement in Washington on Thursday.
One official noted that the staffing level agreement may still take several additional days to finalize after this announcement.
A representative of the IMF mission, in turn, told the publication that his team has now arrived in Warsaw to talk to the Ukrainian side and finalize its assessment. The NBU press service said it could not comment until the IMF mission was completed, and the Finance Ministry also declined to comment.
Optional
The deal follows discussions over the past two weeks about how Kyiv would finance its fight against Russia if U.S. funding does not materialize. These plans, aimed at showing that Ukraine can continue to service its debts, include expanded sales of domestic bonds, tax increases, and spending cuts.
If the US Congress does not approve more than $60 billion in aid to the country for this year, IMF funds are likely to become Kyiv's second-largest financial lifeline after EU grants and loans.
The newspaper added that the IMF money comes at a time when the war-torn country is trying to mobilize resources to continue its resistance to Russia's full-scale invasion, which has been going on for three years.
This disbursement will be the first of four that Ukraine expects this year, totaling $5.4 billion, under the special program approved for Ukraine in 2023. This is the first time the IMF has lent to a country at war.
However, in order to receive the money, the Ukrainian government must fulfill the conditions discussed with the IMF. Among other commitments, the Cabinet of Ministers may have to abandon its recent request to the central bank to allow foreign currency sales to some private Ukrainian companies to help them repay their Eurobond debts, the two officials said. Suspending payments would help Kyiv preserve much-needed foreign exchange reserves.
