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The International Monetary Fund yesterday said its executive board approved a four-year $15.6 billion loan programme for Ukraine, part of a global $115bn package to support the country’s economy as it battles Russia’s invasion.
The decision clears the way for an immediate disbursement of about $2.7bn to Kyiv, and requires ambitious reforms of Ukrainian officials, especially in the energy sector, the Fund said in a statement.
The Extended Fund Facility (EFF) loan is the first major conventional financing programme approved by the IMF for a country involved in a large-scale war. The size of the overall package is meant to signal the global community’s commitment to continue supporting Ukraine in the war, sources said.
Ukraine’s previous, $5bn long-term IMF programme was cancelled in March 2022 when the fund provided $1.4bn in emergency financing with few conditions. It provided another $1.3bn under a “food shock window” programme last October.
The latest loan is expected to unlock about $100bn worth of additional international support for Ukraine. An IMF official said the $115bn package includes the IMF loan, $80bn in pledges for grants and concessional loans from multilateral institutions and other countries, and $20bn worth of debt relief commitments.
Ukraine must meet certain conditions over the next two years, including avoiding steps that could erode tax revenue, keeping adequate foreign exchange reserves to maintain exchange rate stability, promoting central bank independence and strengthening anti-corruption efforts.
Deeper reforms will be required in the second phase of the programme to enhance stability and early post-war reconstruction, returning to pre-war fiscal and monetary policy frameworks, boosting competitiveness and addressing energy sector vulnerabilities, the IMF said.
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