this International Monetary Fund (IMF) confirmed this friday $1300 million new loan to deal with the food emergency Ukraine as a result of the Russian occupation.
After seven months of war, the international financial institution said in a statement that Ukraine’s a state of “enormous human suffering and economic suffering”, It therefore needs urgent financial assistance, both financially and externally.
“More than seven months after the start of the Russian invasion of Ukraine, The human and economic cost continues to be enormous, creating huge and urgent needs The IMF said it estimates the new financing to Ukraine is part of the ‘Shock Window’ Food Programme.
“The authorities deserve considerable praise for maintaining or maintainingn Significant macro-financial stability in these conditions extremely challenging,” added the financial institution to its letter.
IMF claims Ukraine faces risks and uncertainties the ability to enforce policy across the country in relation to the security situation and other external events.
Therefore, the board of directors of the association expressed his understanding for the additional difficulty in assessing With sufficient precision what Ukraine will want to ensure the sustainability of Ukraine’s debt.
Yet, amid mass population migration and the destruction of homes and basic infrastructure, the IMF Ukraine’s Gross Domestic Product (GDP) will shrink by 35 percent in 2022 By 2022.
Therefore, the organization has announced its intention to help. To meet the “urgent needs” of the Ukrainian balance of payments, even because of the large grain export deficit. It will also play a “catalytic role” in obtaining greater financial support from Ukraine’s creditors and donors.
“The Fund will continue to work closely with the Ukrainian authorities. Talks to begin soon to further accelerate donor support and help pave the way for upper credit tranche agreement.