IMF Chief Pushes New $8.1 Billion Lending Program for Ukraine

Kristalina Georgieva, head of the International Monetary Fund (IMF), announced plans to propose an $8.1 billion lending program for Ukraine, emphasizing the critical need to support the war-affected nation. Despite changes since a preliminary agreement, core requirements remain, including introducing a VAT exemption. The IMF aims to ensure economic reforms proceed smoothly.

Kristalina Georgieva, chief of the International Monetary Fund (IMF), has revealed intentions to propose the approval of a new $8.1 billion lending program for Ukraine. Following discussions with Ukrainian President Volodymyr Zelenskiy and other officials, Georgieva highlighted the necessity of stabilizing finances for the nation in conflict.

The IMF head mentioned that while Ukraine's situation has evolved since a preliminary agreement in November, the fundamental requirements of the funding program remain unchanged. Key among these is the introduction of a VAT exemption, a measure facing domestic resistance but deemed crucial by the IMF.

Emphasizing the significance of the VAT exemption, Georgieva insisted on its introduction into parliament, noting its importance for Ukraine's potential EU accession and to attract private investment. She assured that the IMF is working to calibrate the implementation of such requirements, potentially granting Ukraine a year to gain legislative support.

(With inputs from agencies.)