IMF authorizes disbursement of USD2.2B to Ukraine to bolster budget
Date
6/30/2024 5:19:52 AM
(MENAFN) The Executive Board of the International Monetary Fund (IMF) has authorized the disbursement of USD2.2 billion to Ukraine to bolster its budget, following the completion of the fourth review of a USD15.6 billion loan program aimed at supporting the war-torn country. In a statement, the IMF affirmed Ukraine's resilience under the extended financial arrangement despite challenging circumstances, noting the successful achievement of quantitative targets and timely implementation of structural benchmarks.
Despite initial economic resilience, the IMF revised down its GDP growth forecast for Ukraine in 2024 to a range of 2.5 to 3.5 percent, down from the earlier projection of 3.2 percent issued in April's World Economic Outlook report. The adjustment reflects dampened consumer sentiment and business confidence exacerbated by ongoing developments in the Russian-Ukrainian conflict, alongside heightened Russian attacks that inflicted damage on Ukraine's electricity infrastructure.
Ukrainian Deputy Minister of Economy Taras Kachka underscored the profound economic impact of the war, stating that the Ukrainian economy has contracted by 30 percent due to the ongoing conflict. This stark assessment highlights the urgent need for international financial support to stabilize Ukraine's economy and mitigate the broader socio-economic repercussions of the prolonged conflict.
The IMF's latest disbursement underscores ongoing efforts to assist Ukraine in navigating economic challenges and reinforcing its financial stability amid ongoing geopolitical tensions.
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