IMF greenlights $1.1 bln trance of loan for Ukraine

Ukraine has successfully completed a loan-program staff review by the International Monetary Fund, paving the way for a $1.1 billion disbursement to the war-torn nation.

The Washington-based lender’s economists finalized the fifth scheduled review of its $15.6 billion assistance program for Ukraine, the fund said in a statement.

The money will be disbursed after the executive board approves the deal, a step that’s mostly a formality. The IMF said that the board will consider it in the coming weeks.

Ukraine has struggled to keep its economy afloat as 2 1/2 years of war decimated its energy sector and destroyed swathes of its infrastructure and export capacity. The government in Kyiv relies on funding from allies including the US and European Union, where public support has waned as the Russian invasion continues.

Last week, members of the IMF staff visited Ukraine and met with government officials as part of the review.

The IMF’s lending and policy reviews have been at the center of an overall $120 billion-plus in international assistance pledged for Ukraine.

The fund said in its statement that Ukraine met all end-June quantitative performance criteria and the structural benchmark for the review. Understandings were also reached on policy settings and reforms to sustain macroeconomic stability as the war continues, the IMF said.

The fund said that it expects growth to be 3% this year, but that the economy will slow in the second half because of repeated attacks on energy infrastructure and the impact of the war on labor markets and confidence, and for growth of 2.5% to 3.5% in 2025. Risks to the outlook remain exceptionally high, the IMF said.

News.Az