IMF approves $10.24b loan for Ukraine, with $1.9b to go immediately

The new loan will help Kyiv to maintain economic stability and keep public spending flowing. Read more at straitstimes.com.

WASHINGTON - The International Monetary Fund (IMF) on Feb 26 said its executive board had approved an US$8.1 billion (S$10.24 billion), four-year loan for Ukraine, of which $1.5 billion (S$1.9 billion) would be disbursed immediately.

The IMF said the new Extended Fund Facility arrangement for Ukraine would help anchor a US$136.5 billion international support package for the war-torn country, which this week marked the fourth anniversary of Russia’s invasion.

The new loan replaces a US$15.5 billion programme that was approved in 2023 and will help Kyiv to maintain economic stability and keep public spending flowing, the IMF said.

IMF Managing Director Kristalina Georgieva said the loan would resolve Ukraine’s balance of payments problem and restore medium-term external viability, while boosting prospects for reconstruction and growth after the war ended and helping to facilitate Ukraine’s steps to join the European Union.

“Ukraine and its people have weathered a long and devastating war for over four years with remarkable resilience,” she said, lauding efforts by Ukrainian authorities to maintain overall macroeconomic and financial stability, boost domestic revenues and advance some critical reforms.

She said officials were committed to “tackling longstanding bottlenecks to growth,” including through continued efforts to combat corruption, address tax avoidance and evasion, reform energy markets, and strengthen financial market infrastructure.