IMF Approved Granting Ukraine a Credit of 5 Billion Dollars
OREANDA-NEWS. The Executive Board of the International Monetary Fund (IMF) has approved a new programme to support Ukraine. The country will receive a loan of 5 billion US dollars for 18 months. This is stated in a message published on the Fund’s website.
The first tranche will amount about 2.1 billion dollars and will be transferred in June. As the IMF clarifies, the allocated funds will help recoup the deficit of the state budget and balance of payments in Ukraine, as well as continue internal reforms.
“The new program aims to help Ukraine to cope with COVID-19 pandemic challenges by providing balance of payments and budget support, while safeguarding achievements to date and advancing a small set of key structural reforms, to ensure that Ukraine is well-poised to return to growth when the crisis ends,” the statement of the IMF reads.
It is expected that in 2020, the Ukraine’s budget will suffer greatly due to the spread of infection, incomes will drop sharply, and spending for urgent needs will increase.