IMF approves $8.1 billion loan for Ukraine, with $1.5 billion to go immediately

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a news conference during the World Bank/IMF Annual Meetings in Washington, Oct. 24, 2024. (AP Photo/Jose Luis Magana, File)

WASHINGTON -- The International Monetary Fund on Thursday said its executive board had approved an US$8.1 billion, four-year loan for Ukraine, of which $1.5 billion would be disbursed immediately.

The IMF said the new Extended Fund Facility arrangement for Ukraine would help anchor a $136.5 billion international support package for the war-torn country, which this week marked the fourth anniversary of Russia’s invasion.

The new loan replaces a $15.5 billion program that was approved in 2023 and will help Kyiv to maintain economic stability and keep public spending flowing, the IMF said.

IMF Managing Director Kristalina Georgieva said the loan would resolve Ukraine’s balance of payments problem and restore medium-term external viability, while boosting prospects for reconstruction and growth after the war ended and helping to facilitate Ukraine’s steps to join the European Union.

“Ukraine and its people have weathered a long and devastating war for over four years with remarkable resilience,” she said, lauding efforts by Ukrainian authorities to maintain overall macroeconomic and financial stability, boost domestic revenues and advance some critical reforms.

She said officials were committed to “tackling longstanding bottlenecks to growth,” including through continued efforts to combat corruption, address tax avoidance and evasion, reform energy markets, and strengthen financial market infrastructure.

The program would be promptly recalibrated in the case of successful peace negotiations, she said in a statement.

(Reporting by Andrea Shalal; Editing by Sonali Paul)