IMF agrees to $500-million Ukraine loan payout
The seal of the International Monetary Fund is at the headquarters building in Washington, DC, April 12, 2024, in Washington, DC, ahead of the IMF/World Bank 2024 Spring Meetings. (Photo by MANDEL NGAN / Agence France-Presse)
WASHINGTON, United States — The International Monetary Fund on Thursday announced it had reached agreement with Ukraine on a loan program review to unlock around $500 million dollars of funds to support macroeconomic stability.
Ukraine, which has been locked in a deadly war with Russia for more than three years, is partly through a four-year, $15.5-billion bailout from the Washington-based international financial institution.
Following a visit to the country, the IMF said Ukraine had met all of its targets and performance criteria through the end of March, and was recommending its executive board approve the new disbursement.
READ: Ukraine needs money from the US and Europe to keep its economy running
If approved by the board, which is largely a formality, it would make around half a billion dollars immediately available to Ukraine, bringing its disbursal under the current program to close to $10.7 billion.
READ: Private sector to play important role in Ukraine reconstruction – World Bank
‘Resilient’ economy
“The economy remains resilient despite the challenges arising from more than three years of war,” IMF mission chief Gavin Gray said in a statement.
The Fund expects “modest” inflation-adjusted economic growth of between 2 percent and 3 percent this year, “reflecting headwinds from labor constraints and damage to energy infrastructure,” he added.
But he warned that inflation had continued to rise, hitting 15.1 percent in the year to April due largely to rising food and labor costs.
In the statement, the Fund said Ukraine’s economic outlook “remains exceptionally uncertain as the war continues to take a heavy toll on the population, economy, and infrastructure.”
“Despite the challenging environment, the program remains on track and fully financed on the back of large-scale external commitments,” it added.
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