IMF approves $15.6bn loan for Ukraine’s post-war reconstruction

Ukraine has secured a $15.6bn loan programme from the International Monetary Fund (IMF), aimed at supporting the country’s war-torn economy and helping it return to pre-war policy frameworks, including EU membership goals. As part of the agreement, Ukraine will take measures to “strengthen fiscal, external, price and financial stability” over the next year to 18 months, following which the country will work towards boosting macroeconomic stability and enhancing resilience to improve long-term growth prospects. The agreement also aims to mobilise large-scale concessional financing to support Ukraine from international donor partners during the programme’s duration.

The IMF’s executive board will review the agreement in the coming weeks, and the loan programme is subject to approval from that board. Ukraine’s economy decreased 30% last year after the Russian invasion, and the conflict will continue to affect the economy adversely, according to Gavin Gray who led IMF’s team that held talks with Ukrainian officials. Moody’s Investors Service downgraded Ukraine’s rating last month, so the loan is a validation of the country’s policymaking skills and a sign of forthcoming external support.