The IMF Approved a Large-Scale Financing Programme for Ukraine
On Friday, the Executive Board of the International Monetary Fund (IMF) approved a 4-year USD 15.6 billion financing programme for Ukraine, successful approval of which was contributed by Lithuania, together with Canada, Italy, the USA, Japan, the United Kingdom, France, Germany, Spain, the Netherlands, Belgium, Poland and Slovakia. The first instalment amounting to approximately USD 2.7 billion will reach Ukraine in the coming days, and the programme will help to cover Ukraine's financing needs both this year and beyond.
In order to fulfil the necessary requirements for approving the programme, the aforementioned group of countries submitted a political statement, which provides financial assurance to the IMF, confirming the readiness of the countries to continue supporting Ukraine and ensuring the country's capacity to fulfil its commitments to the IMF in the future.
"The large-scale financing programme for Ukraine approved by the IMF is an extremely significant step both in covering Ukraine's financing needs this year and next year, as well as in strengthening the country's macroeconomic and financial stability. The programme will complement the funds already provided by Ukrainian sponsors at the EU level through other international financial institutions and on a bilateral basis. We are happy to be able to contribute to the activation of the IMF programme together with our Western partners - this shows our determination to support Ukraine in all possible ways as long as necessary," says Minister of Finance G. Skaistė.
The programme, which is designed to support the country's economy, strengthen macroeconomic and financial stability, and implement long-term structural reforms in Ukraine, is vital to meeting Ukraine's financing needs. It is expected that it will act as a guarantor of security for the Ukrainian economy, giving a strong impetus to the mobilization of further much-needed support from the international community for Ukraine.
On 29 March, at the Government meeting, Lithuania's joining the political statement of the group of countries, which provides the IMF with financial assurances regarding the fulfilment of Ukraine's commitments to the IMF, was approved.
The programme was approved by the IMF Executive Board on 31 March. The scope of the programme is USD 15.6 billion, with a duration of 48 months. Regular programme reviews are scheduled. The programme is divided into two phases. During the first phase, which will last 12-18 months, Ukraine will take measures to strengthen fiscal, external, price and financial stability. The second phase will focus on broader reforms aimed at strengthening macroeconomic stability and supporting the country's recovery and reconstruction, taking into account Ukraine's aspiration to become a member of the European Union.
Last updated: 11-04-2023
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