IMF approves $15 billion aid plan for Ukraine
A Ukrainian serviceman documents the destruction of a house destroyed by a Russian rocket in Kharkiv, Friday, March 31, 2023 (illustration image). AP - Andrii Marienko
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This aid package signed two weeks ago with the Ukrainian government is part of a vast envelope of 115 billion dollars. The validation of this new assistance allows the disbursement of a first tranche of $2.7 billion.
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The objective of this new aid of $ 15.6 million is initially to allow the Ukrainian state to consolidate its 2023 budget, but also to strengthen its fiscal resources and limit inflation.
As for the International Monetary Fund's (IMF) overall assistance of $115 billion over four years, it has several components: $2 billion in partial cancellation of existing debt, debt relief of $20 billion, $60 billion in loans and $20 billion in grants, according to the IMF.
Reconstruction
With this sum, Ukraine should ensure post-war recovery and reconstruction. The IMF expects a gradual economic recovery this year in Ukraine. But it also foresees a darker scenario, in case the war extends until the end of 2025.
Ukraine has been supported by the institutions since the beginning of the Russian offensive on February 24, 2022. The World Bank paid him $20 billion, the United States $110 billion, with military support. This has allowed the country to keep its public services afloat or to pay civil servants' salaries.
► Read also: The European Union will adopt a tenth round of sanctions against Russia
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- Ukraine
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