(MENAFN- UkrinForm) Ukraine is in consultations with the International Monetary Fund to seal by year-end an agreement for a $15-$20 billion loan to help restore its war-torn economy.

That's according to National Bank Governor Kyrylo Shevchenko, who spoke with Reuters , Ukrinform reports.

Kyiv has already submitted its request to the IMF and is now in consultation with the fund over the new financing, the governor said.

He hopes Ukraine would receive as much as $20 billion over two or three years through a Stand-By Arrangement (SBA) or an Extended Fund Facility (EFF).

Read also: EU Council approves additional EUR 1B assistance for Ukraine

Finance experts believe that, battered by Russia's invasion, Ukraine's economy faces a 35%-45% economic contraction in 2022 and a monthly fiscal shortfall of $5 billion. Therefore, the nation is heavily reliant on foreign financing from its Western partners.

The central bank chief said a new program should provide measures that will help stabilize the economy. That could ensure a return to pre-war conditions, such as a flexible exchange rate, no limits on the currency market, decreasing non-performing loans in the banking sector and a balanced fiscal policy.

Read also: Ukraine to receive €200 million interest-free loan from Italy

As Ukrinform reported earlier, the group of creditors of Ukraine from G7 countries and Paris Club members announced their intention to suspend principal and interest payments on bilateral debts until the end of the year 2023, with the possibility to extend the suspension by an additional year.

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