IMF Approves $8.1 Billion Loan for Ukraine Amid Ongoing War Against Russia

The IMF has approved an $8.1 billion loan for Ukraine to support its economy amid the ongoing conflict with Russia. The loan is part of a $136.5 billion international support package. Ukrainian officials commit to reform efforts while facing economic challenges and planning for post-war recovery.

The International Monetary Fund (IMF) has approved an $8.1 billion, four-year loan for Ukraine, releasing $1.5 billion immediately to ensure the government remains operational amid its ongoing war with Russia. This new arrangement is part of a $136.5 billion international support package aimed at stabilizing the war-torn country's economy as it continues to resist Russian aggression, now in its fifth year.

The loan replaces a $15.5 billion program from 2023, with Ukrainian Prime Minister Yulia Svyrydenko recognizing it as crucial for addressing a significant budget shortfall. The package includes substantial support from the European Union, signifying the collaborative effort behind Ukraine's financial rescue. Meanwhile, a new report from several international organizations estimates the cost of rebuilding Ukraine at $588 billion over the coming decade.

IMF Managing Director Kristalina Georgieva emphasized Ukraine's resilience and the commitment to necessary reforms like combating corruption and enhancing financial infrastructure. The program targets a balance of payments solution and projects modest economic growth amidst high uncertainty. Continued international backing and strategic reforms are key to Ukraine's economic stability and future recovery.

(With inputs from agencies.)