20:27 04 Sep 2022

Ukraine receives nearly $37B in financial support from IMF over 30 years

About USD 37 billion of financial support within the framework of 13 cooperation programs and the implementation of numerous structural reforms in the areas of monetary and fiscal policy, bank, judicial and tax policy, customs, public administration, the fight against corruption, the land market and medicine – these are the results of long-term coordinated cooperation of Ukraine with the Fund.

That's according to Ukraine's Finance Ministry.

"During the first 20 years of the partnership, Ukraine received about USD 18.26 billion in financial assistance to reduce the deficit of the balance of payments, support the exchange rate of the national currency, and replenish foreign exchange reserves," the report reads.

When the global financial crisis shook the whole world in 2008, the Fund provided a record loan for Ukraine at the time of USD 10.6 billion (SDR 7 billion), the ministry notes.

After the occupation of Crimea and the start of the war in the east of the country, Ukraine received two tranches with a total amount of USD 4.6 billion (SDR 2.97 billion). Subsequently, they approved the Extended Fund Facility, under which USD 8.7 billion (SDR 6.15 billion) was received. Under this program, Ukraine received the maximum number of tranches – four, and the first tranche was the largest ever in the amount of approximately USD 5 billion (SDR 3.55 billion).

In March, the Executive Directors of the Fund voted to provide our country with funds within the framework of the Rapid Financing Instrument in the amount of USD 1.4 billion. Financial aid was a significant contribution to mitigating the economic consequences of the invasion.

"Cooperation with the IMF is not only about supporting the financial system and reforms. It is also about trust in the state. The most influential domestic and international investors are focused on the expert opinion of the IMF and their estimation of the state of the economy. The Fund's financial assistance in March 2022 had a significant impact on the mobilization of funds from other partners," reads the report.

As reported earlier, over 30 years of cooperation, the World Bank approved 70 loans for Ukraine worth more than $14.4 billion and EUR 2.1 billion, of which $11.8 billion and EUR 1.2 billion have been received so far.

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