The International Monetary Fund (IMF) indicated on Tuesday March 21 that an agreement had been reached with the Ukrainian government on the implementation of an aid plan, the total amount of which will amount to 15.6 billion dollars. . Aid which should make it possible to “support the gradual economic recovery while creating the conditions for long-term growth in a context of post-conflict reconstruction and on the path to accession to the European Union”, specified the IMF in its press release. The agreement will be presented “in the coming weeks” to the Fund’s Board of Directors for final validation.
“Beyond the horrific human cost, the Russian invasion of Ukraine continues to have a devastating effect on the economy: GDP fell by 30% in 2022, a large share of the apparatus industry was destroyed and poverty soared,” IMF mission chief Gavin Gray said in the statement. Despite these difficulties, the Ukrainian government has been able to “maintain financial and macroeconomic stability, in particular thanks to substantial international support and the implementation of sound policies”.
In a statement, U.S. Treasury Secretary Janet Yellen “welcomed” the institution’s agreement with Ukraine, adding that the United States “will continue to support the government and people of Ukraine as long as necessary” in the face of Russia.
Ukraine has benefited from significant support since the beginning of the conflict, on February 24, 2022, both from the World Bank, which has already granted it more than 20 billion dollars, in the form of loans or donations , than the United States, more than 110 billion dollars by integrating military support. A large part of these funds have made it possible to keep public services afloat and to pay the salaries of civil servants, as well as to ensure the care of internally displaced persons.
The IMF is counting on a partial and gradual economic recovery this year, in particular thanks to the maintenance of essential infrastructure, such as the electricity network, yet targeted by Russia. “The goals of the Ukrainian government are to support the economy in these exceptional circumstances, restore financial credibility in the debt market and support the recovery towards EU membership,” Gray said.
