IMF launches new trust fund to support Ukraine's economic reforms

The resources will help cover IMF capacity development operations over the 2024-2028 period, the global lender said. President Joe Biden's administration has emphasized Ukraine's progress in fighting corruption and reforming its economy as the White House presses the U.S. Congress to approve $61 billion in military and economic aid to help the country fight Russia's invasion and maintain government operations.

The International Monetary Fund on Tuesday said it had formally launched a new trust fund to help support Ukraine's economic and financial reforms over the next five years, with a goal to raise $65 million from donor countries.

The Ukraine Capacity Development Fund was launched in Kyiv with initial resources of $16.5 million provided by the Netherlands, Slovakia, Latvia, Japan and Lithuania. The fund's initial work plan calls for $27.5 million to support core areas of Ukraine's reform agenda, the IMF said, adding that these are aligned with Ukraine's $15.5 billion Extended Fund Facility loan program.

The areas to be supported, include: fiscal reforms (including revenue mobilization, public financial management and expenditure policy); monetary policy; financial sector policies; anti-corruption policies; data compilation and dissemination; and training and technical assistance on macroeconomic frameworks. The resources will help cover IMF capacity development operations over the 2024-2028 period, the global lender said.

President Joe Biden's administration has emphasized Ukraine's progress in fighting corruption and reforming its economy as the White House presses the U.S. Congress to approve $61 billion in military and economic aid to help the country fight Russia's invasion and maintain government operations. The U.S. Senate late on Tuesday night passed a $95 billion Ukraine-Israel-Taiwan aid bill, but it faces an uncertain path in the Republican-controlled House of Representatives.