The executive board of the International Monetary Fund (IMF) approved on March 9 a disbursement of $1.4 billion to Ukraine under the Rapid Financing Instrument (RFI) to help meet urgent financing needs and mitigate the economic impact of the war, the IMF said.
The executive board expressed its strong support for the Ukrainian people, the IMF said.
“The war in Ukraine is resulting in tragic loss of life and human suffering,” the statement said.
“While the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious, with refugee flows of over two million persons in just 13 days and large-scale destruction of key infrastructure in Ukraine.”
This disbursement under the RFI, equivalent to 50 per cent of Ukraine’s quota in the IMF, will help meet urgent balance of payment needs arising from the impacts of the ongoing war and will provide critical support in the short term while playing a catalytic role for financing from other partners, the IMF said.
The Ukrainian authorities have cancelled the Stand-by Arrangement and the authorities have expressed their intent to work with the IMF to design an appropriate economic program aimed at rehabilitation and growth, when conditions permit, the statement said.
The authorities intend to remain in close consultation with staff as they continue to design and implement effective crisis mitigation measures, the IMF said.
IMF managing director Kristalina Georgieva said that the Russian military invasion of Ukraine had been responsible for a massive humanitarian and economic crisis.
“The tragic loss of life, huge refugee flows, and immense destruction of infrastructure and productive capacity is causing severe human suffering and will lead to a deep recession this year. Financing needs are large, urgent, and could rise significantly as the war continues,” Georgieva said.
(Photo: Bruno Sanchez Andrade)
For the rest of The Sofia Globe’s continuing coverage of Russia’s invasion of Ukraine, please click here.
Please support independent journalism by clicking on the orange button below. For as little as three euro a month or the equivalent in other currencies, you can support The Sofia Globe via patreon.com: