The International Monetary Fund said on Friday that its new initiative to help countries facing food crises will provide Ukraine $1.3 billion in emergency aid.
The package would assist in addressing Ukraine’s “immediate balance of payment needs… while acting as a catalyst for future financial support from Ukraine’s creditors and donors,” according to an announcement from the IMF.
“The scope and ferocity of Russia’s assault on Ukraine, which began more than seven months ago, have resulted in enormous economic and human hardship… The real GDP is expected to shrink by 35% in 2022 compared to 2021, and finance requirements are still quite high.
Early on Friday, Ukrainian President Volodymyr Zelenskyy announced the IMF’s assistance. He expressed gratitude to the crisis lender’s executive board and managing director Kristalina Georgieva on Twitter, stating that “the money will travel to Ukraine today.”
Additionally, the IMF stated that the Ukrainian government “deserves enormous credit for having preserved a significant degree of macro-financial stability in under exceptionally difficult conditions.”
IMF Managing Director Kristalina Georgieva stated that important policies have been put in place to protect priority spending and maintain financial stability.
“Creditors and donors have stated that they plan to continue financially assisting Ukraine to help achieve a balanced growth path and medium-term external sustainability,” she continued. “They have done so through the relevant Executive Directors at the Fund.
The World Bank last week gave Ukraine an additional $530 million in funding to “address pressing requirements precipitated by Russia’s aggression.”
According to the bank, over $13 billion in emergency money for Ukraine has already been mobilised, $11 billion of which has already been distributed.
The same day, a fresh $12.3 billion aid package for Ukraine was authorised by the US Congress, which included $3.7 billion for military hardware. In sum, the US has provided Kyiv with $65 billion since Russia’s invasion in February.
Late last month, President Vladimir Putin said that Russia had seized four territories in the south and east of Ukraine. However, for the past few weeks, Ukrainian forces have been fighting back against Russian troops along the frontlines, including in certain areas of Donetsk.
