Ukraine accepts IMF forecast of bigger $65 billion financing gap

September 23 ------ The International Monetary Fund has persuaded Ukraine's government to accept the fund's $65 billion estimate of foreign funding needed through 2027 compared to Ukraine's earlier $38 billion estimate, Bloomberg News reported, citing people familiar with the matter.

They agreed after talks between Kyiv and the Washington-based lender, and the figure has been shared with the European Commission, according to the report. The size of a new IMF loan to Ukraine, though not formally discussed, has been estimated at about $8 billion, the report added. Ukraine's current $15.5 billion program with the IMF expires in 2027.

Kyiv is spending about 60% of its budget on its war effort against Russia and relies heavily on financial support from its Western allies to cover the cost of pensions, public sector wages, and humanitarian spending. Kyiv is spending about 60% of its budget on its war effort against Russia and relies heavily on financial support from its Western allies to cover the cost of pensions, public sector wages, and humanitarian spending.

Source: reuters.com