War in Ukraine: IMF confirms loan of more than 8 billion dollars

“It is very important for us that Ukraine has guaranteed international financial support from its partners,” wrote Ukrainian Prime Minister Ioulia Svyrydenko in a statement on Facebook.

A sum that will help stabilize the war-torn country’s economy. The International Monetary Fund (IMF) confirmed on Thursday, February 26, that it would provide a new aid program to Ukraine for $8.1 billion over four years. The Washington-based international organization had announced in late November that it had reached an agreement with the Ukrainian government on this matter. The IMF’s board of directors still needed to give formal approval.

“The board’s decision allows for the immediate disbursement of around $1.5 billion,” the IMF highlighted in a statement. “The overall objectives of the new program are to continue to anchor economic and financial stability, restore debt sustainability for the future, (…) and advance reforms that will lay the groundwork for a strong recovery after the war and support Ukraine’s goal of EU accession,” added the IMF. The organization also stated that the risks associated with this program are “exceptionally high” and that its success will depend in large part on the “ongoing support of the international community.”

The worst armed conflict in Europe since World War II

Ukrainian Prime Minister Ioulia Svyrydenko indicated that the initial funds would go towards financing the budget deficit and supporting economic stability. “It is very important for us that, in the fifth year of a large-scale war, amidst systematic attacks on the energy sector, Ukraine has guaranteed international financial support from its partners as well as the necessary resources for the stable functioning of the state,” she wrote in a statement on Facebook.

The war in Ukraine, sparked by the Russian invasion, entered its fifth year this week. It is the worst armed conflict in Europe since World War II, with hundreds of thousands dead and injured, millions of Ukrainians displaced abroad, and massive destruction, particularly in eastern and southern Ukraine.