Kiev agrees with lenders on a loan program worth billions

Kiev agrees with lenders on a loan program worth billions

President of Ukraine Volodymyr Zelensky

Ukraine had been trying to get the loan program for months.

(Photo: dpa)

Washington The Ukraine and its international financiers have set the course for a new billion-euro financing package. That from IMF The prospective loan program is to be Russia give the attacked country access to 15.6 billion US dollars (around 14.5 billion euros), as the International Monetary Fund based in Washington announced on Tuesday.

The technical level agreement (a so-called Staff Level Agreement) is subject to approval by the Executive Board. The test is expected to take place in the coming weeks, it said.

In addition to the terrible humanitarian consequences, Russia’s invasion of Ukraine continues to have a devastating impact on the economy, he said IMF. “Economic activity fell by 30 percent in 2022, much of the capital stock was destroyed, and poverty rose.”

The IMF expects Ukraine’s economy to slowly recover in the coming quarters “as the economy recovers from severe damage to critical infrastructure, although headwinds remain, including the risk of further escalation of the conflict.” .

The goals of the aid program are to maintain economic and financial stability under “extraordinarily high levels of uncertainty” and long-term growth as part of post-war reconstruction. Ukraine had tried to get the multi-billion dollar aid program – months of negotiations had preceded it.

The IMF recently changed its rules to allow lending programs for countries facing “extraordinarily high levels of uncertainty”. This move has paved the way for the new loan program, which is expected to run for four years.

More: Russia wants to create special economic zones in occupied Ukrainian territories

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