The Executive Board of the International Monetary Fund (IMF) approved a disbursement of $1.3 billion under the Rapid Financing Instrument (RFI) to help meet Ukraine’s urgent balance of payments needs.
This is said in a press release published on IMF website, Ukrinform reports.
“More than seven months after the start of Russia’s invasion of Ukraine, the humanitarian and economic toll remains massive, resulting in large and urgent fiscal and external financing needs,” the IMF said.
It is noted that amid massive population displacement and destruction of housing and key infrastructure, the IMF projects Ukraine’s real GDP to contract by 35% in 2022 relative to 2021 and financing needs remain very large.
The IMF noted that this disbursement under the RFI (equivalent to 50% of Ukraine’s quota in the IMF) will help meet urgent balance of payment needs, including due to a large cereal export shortfall, while playing a catalytic role for further financial support from Ukraine’s creditors and donors.
The IMF said that in order to reduce the risks associated lending to Ukraine in these extremely challenging circumstances, the bulk of Ukraine’s official bilateral creditors and donors have stated that they intend to continue to provide financial support on appropriate terms to secure Ukraine’s ability to service to the Fund its existing obligations.
As Ukrinform reported, President Volodymyr Zelensky on Friday announced that the Executive Board of the IMF supported the provision of about $1.3 billion to Ukraine under the Rapid Financing Instrument.
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