The International Monetary Fund (IMF) will release $1.3 billion in emergency financing for Ukraine through its new instrument to help deal with food crises, the institution announced in a press release on Friday.
This new envelope is intended to “support Ukraine in meeting its urgent needs in terms of balance of payments,” but also “to play a catalytic role for future financial support from Ukraine’s donors and creditors,” the IMF explained.
GDP falls 35%
“The scale and intensity of the war launched by Russia against Ukraine more than seven months ago has caused considerable human suffering and has strongly affected the Ukrainian economy,” the institution estimated in its press release, adding: “It is expected that the GDP will decrease by 35% in 2022 compared to 2021 and the financing needs remain very important”.
Ukrainian President Volodymyr Zelensky announced the IMF’s assistance earlier in the day on Twitter, adding that “funds will arrive in Ukraine starting today” and thanking Managing Director Kristalina Georgieva and the IMF Executive Board “for your support”.
The Fund also highlighted “the praise that the authorities deserve for having been able to maintain the macroeconomic stability of the country in these very difficult circumstances.”
530 million at the end of September
By the end of September, the World Bank had also provided $530 million in additional support to “address urgent needs caused by the Russian invasion,” bringing the total aid provided by the institution to $13 billion since the start of the conflict.
The US Congress, meanwhile, voted a new aid tranche of $12.3 billion, including $3.7 billion for military equipment, bringing the total US effort to $65 billion since the launch of the Russian invasion.
Russian President Vladimir Putin announced on September 30 the annexation of four Ukrainian regions partially conquered at the beginning of the conflict, but his troops have suffered several setbacks since the beginning of September.
Source: BFM TV
