IMF Approves $15.6 Billion Loan Package for Ukraine

The International Monetary Fund agreed to provide Ukraine with a loan package worth $15.6 billion to support the country's economic reforms.

The IMF Executive Board approved the arrangement under the Extended Fund Facility (EFF) that will provide financial support to Ukraine over three years to support the implementation of the authorities' economic reform agenda.

"The EFF-supported program will help narrow budget and external balances, upgrade governance, enhance resilience to shocks, and strengthen Ukraine's investment potential," the IMF said in a statement.

The loan package aims to strengthen macroeconomic stability, improve governance and transparency, fight corruption, reform the judicial system, develop the private sector, and modernize the gas transit system.

The disbursements under the EFF arrangement will be subject to semi-annual reviews to evaluate progress in implementing the program. Continuous progress on reforms will enable further disbursements.

The IMF's support aims to help Ukraine reduce vulnerabilities and advance sustainable and inclusive growth, welcoming the authorities' strong commitment to reforms. The IMF also praised Ukraine's significant anti-corruption efforts but called for further progress.

The $15.6 billion IMF loan package would provide a much-needed financial lifeline to Ukraine as the country continues to grapple with challenges including the economic crisis, conflict in eastern regions, and the coronavirus pandemic.