The International Monetary Fund (IMF) announced Tuesday that it had reached an agreement with the Ukrainian government to draw up a $15.6 billion bailout plan.
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The plan should make it possible to “support the gradual economic recovery while creating the conditions for long-term growth in the context of post-conflict reconstruction and on the way to joining the European Union (EU),” the IMF said in a statement.
The agreement will be submitted to the fund’s board of directors for final validation “in the coming weeks”.
“Aside from the appalling human cost, the Russian invasion of Ukraine continues to have a devastating impact on the economy: GDP has fallen by 30% in 2022, much of the appliance industry has been destroyed and poverty has skyrocketed,” the director recalled IMF Mission on Site Gavin Gray, quoted in press release.
Despite these difficulties, the Ukrainian government managed to “maintain financial and macroeconomic stability, thanks in particular to significant international support and the implementation of sound policies”.
In a statement, US Treasury Secretary Janet Yellen “welcomed” the institution’s deal with Ukraine, adding that the United States “will continue to support the government and people of Ukraine for as long as necessary” in the face of Russia.
Ukraine has received significant assistance since the conflict began on February 24, 2022, both from the World Bank, which has already granted it more than $20 billion in loans or donations, and from the United States, through more than $110 billion the integration of military support.
A large part of these funds made it possible to keep the civil service alive and to pay the salaries of civil servants and to ensure the care of internally displaced persons.
The IMF expects a partial and gradual economic recovery this year, thanks in particular to Russia’s efforts to maintain essential infrastructure such as the electricity grid.
“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 in view of EU accession,” underlined Mr. Gray.