(MENAFN) Ukraine has secured a USD15.6 billion loan package from the International Monetary Fund (IMF) to address its strained government finances, which have been severely impacted by Russia's invasion. The loan package is aimed at providing much-needed support to Ukraine's economy by reassuring its allies that the country is pursuing strong economic policies and fighting corruption. According to Ukraine's finance ministry, the loan program will help to mobilize financing from its international partners, while also maintaining macrofinancial stability and ensuring a path to post-war reconstruction after the country's victory in the war against the aggressor.
The loan program will run for a period of four years, with the first 12 to 18 months focused on helping Ukraine close its massive budget deficit and easing the pressure to print money for spending purposes. This move is significant as printing money to fund people's pensions, state salaries, and other basic services can further exacerbate the situation by fueling inflation and destabilizing the currency.
The remaining portion of the program will focus on supporting Ukraine's bid for European Union membership and post-war reconstruction efforts. The IMF's support for Ukraine is crucial, as it not only provides the country with much-needed funding but also sends a strong message to the international community that Ukraine is taking concrete steps to stabilize its economy and promote sustainable growth. The loan package is expected to serve as a catalyst for additional financing from other international partners, further strengthening Ukraine's economic outlook and laying the foundation for a more prosperous future.
MENAFN22032023000045014146ID1105835783
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.