IMF reaches agreement on $15.6bn support program for Ukraine

March 22 ----- The International Monetary Fund (IMF) has reached a staff-level agreement with Ukraine for a four-year funding arrangement worth roughly $15.6bn (£12.8bn).

The agreement, which is yet to be approved by the IMF's board, follows months of talks between IMF staff and Ukrainian officials. Ukraine chief for the IMF, Gavin Gray, said the support package is "expected to help mobilize large-scale concessional financing from Ukraine’s international donors and partners".

He said Russia's invasion of Ukraine has had a "devastating impact" on the Ukrainian economy, which contracted by 30% last year. "A large share of the capital stock has been destroyed, and poverty levels have climbed”.

Ukraine is expected to see a "gradual economic recovery" in the coming months as it recovers from widespread damage to critical infrastructure. But "headwinds persist", Mr. Gray added, "including the risk of further escalation in the conflict". He said IMF staff expect the change in Ukraine's real gross domestic for 2023 to range from -3% to +1%.

IMF board members are set to consider the agreement in the next few weeks.

Source: news.sky.com.com