(Finance) – The Executive Committee of the International Monetary Fund has approved a disbursement from 1.4 billion dollars in favor of Ukraine, based on the Rapid Financing Instrument, to help support urgent financial needs and mitigate the impact of the war.
The Washington institution recalls that the disbursement annunciato equates to half of Ukraine’s equity stake in the fund itself and which will help address war-related payment needs and provide short-term support while acting as a catalyst for other partners’ funding. At the moment, the IMF expects Ukraine’s budget deficit to rise to 6.7% of GDP this year, from 4.1% in 2021, and the debt to rise to 60.3% from 50.2%. The study estimates that the debt remains sustainable “on condition of a rapid resolution of the situation and sufficient funding from official fronts”, but also on the basis of the forecast of “a strong recovery and reconstruction in the medium term”. At the same time, he admits that “Ukraine’s ability to repay the Fund is subject to exceptional risks”.
With a statement, the IMF adds that the directorate has expressed strong support for the Ukrainian people for a war that is causing “suffering and tragic loss of life. In the face of prospects subject to extraordinary uncertainty, the economic consequences are already very serious – he says again. the IMF – with nearly 2 million refugees alone 13 days and large-scale destruction of key infrastructure “.
According to the director of the IMF, Kristalina Georgieva in a statement released together with the report of forecasts on the fallout of the war, which follows the approval by the directorate of the emergency disbursement, the Russian military invasion triggered “a serious humanitarian and economic crisis” in Ukraine, where “the tragic loss of life, massive refugee flows and the immense destruction of infrastructure and production capacity is causing severe human suffering and this year will lead to a deep recession. ”