The Board of Directors of the International Monetary Fund plans to consider a new financing program for Ukraine totaling $8.1 billion in the coming days.
Source: “Espreso”
It is expected that once approved, this program will replace the current IMF credit line of $15.5 billion. The Fund believes the new mechanism will help Ukraine continue to cover budget expenditures and maintain macroeconomic stability amid the full-scale war with Russia. According to estimates by the Ukrainian authorities, the state budget deficit in the coming years could approach $140 billion.
The IMF reported that Ukraine has met the preliminary conditions for consideration of the new program. In particular, the Ukrainian side submitted a draft labor code and adopted the state budget.
The Fund also forecasts that Ukraine’s economic growth in 2025 is likely to be below 2%. After four years of war, the country’s economy, according to IMF assessments, has stabilized at a level of slower growth with a larger budget deficit.
The IMF emphasizes that Russia’s full-scale invasion continues to inflict serious losses on Ukraine’s population and economy, while strikes on energy and logistics infrastructure significantly complicate economic activity.
As of January, about 5 million Ukrainian refugees were in European countries, while another 3.7 million people remained internally displaced.
At the same time, the World Bank, the Ukrainian government, and the European Union are completing a new assessment of the cost of the country’s recovery. It is expected to exceed last year’s figure of $524 billion.