The International Monetary Fund (IMF) has approved a $1.1 billion payout for Ukraine, aimed at providing budget support to the war-torn country. This disbursement is part of an ongoing four-year, $15.5 billion program that was approved in March 2023. With this latest tranche, the total amount disbursed to Ukraine under the program has reached $8.7 billion.
IMF Managing Director Kristalina Georgieva highlighted the severe impact of Russia’s war on Ukraine, stating, “Russia’s war in Ukraine continues to bring a devastating social and economic toll on Ukraine.” Despite these challenges, Georgieva praised the Ukrainian authorities for maintaining macroeconomic and financial stability through skillful policymaking and substantial external support.
“The economy has remained resilient, despite significant damage to the energy infrastructure, reflecting the continued adaptability of households and firms,” Georgieva added.
The IMF noted that Ukraine had met all relevant targets, including structural reforms related to tax privileges, public companies, and customs reform. The Fund also reported that Ukraine’s economy had been “more resilient than expected” in the first half of the year, supported by strong domestic data and continued external assistance.
However, the IMF warned that the economic outlook for Ukraine through the end of next year had worsened due to sustained Russian attacks on Ukrainian energy infrastructure and ongoing uncertainty about the war. The economic outlook remains subject to “exceptionally high uncertainty,” the IMF stated.
