The International Monetary Fund (IMF) has greenlit a third review of Ukraine's $15.6 billion loan program, authorizing the release of $880 million to support the country's budget. With this disbursement, the total amount received by Ukraine reaches $5.4 billion, as confirmed by the IMF on Thursday.
While acknowledging Ukraine's strong performance in adhering to the IMF program over the past year, IMF Ukraine mission chief Gavin Gray cautioned that the country still faces significant risks, especially amid the ongoing conflict with Russia and uncertainties surrounding external financing. Despite these challenges, Gray expressed optimism that the war in Ukraine would gradually subside by the end of 2024.
Gray highlighted Ukraine's overall compliance with the IMF program's requirements, noting that the country had met nearly all quantitative performance criteria. However, a minor discrepancy related to tax revenues was reported, which did not significantly impact the program's progress.
The IMF funds, expected to be disbursed in the coming days, come at a crucial time as the US Congress deliberates on a $61 billion supplemental aid package for Ukraine. Gray indicated that the IMF would assess the implications on Ukraine's debt levels if a portion of this aid were to be converted into a loan instead of a grant.
Sanaa Nadeem, the IMF's deputy mission chief for Ukraine, disclosed that a new debt sustainability analysis had been approved, excluding approximately $3 billion in debt related to Russian Eurobonds. Nadeem affirmed ongoing efforts to restructure Ukraine's commercial debt, with technical discussions expected to intensify in the coming weeks.
While acknowledging Ukraine's strong performance in adhering to the IMF program over the past year, IMF Ukraine mission chief Gavin Gray cautioned that the country still faces significant risks, especially amid the ongoing conflict with Russia and uncertainties surrounding external financing. Despite these challenges, Gray expressed optimism that the war in Ukraine would gradually subside by the end of 2024.
Gray highlighted Ukraine's overall compliance with the IMF program's requirements, noting that the country had met nearly all quantitative performance criteria. However, a minor discrepancy related to tax revenues was reported, which did not significantly impact the program's progress.
The IMF funds, expected to be disbursed in the coming days, come at a crucial time as the US Congress deliberates on a $61 billion supplemental aid package for Ukraine. Gray indicated that the IMF would assess the implications on Ukraine's debt levels if a portion of this aid were to be converted into a loan instead of a grant.
Sanaa Nadeem, the IMF's deputy mission chief for Ukraine, disclosed that a new debt sustainability analysis had been approved, excluding approximately $3 billion in debt related to Russian Eurobonds. Nadeem affirmed ongoing efforts to restructure Ukraine's commercial debt, with technical discussions expected to intensify in the coming weeks.
