IMF, Ukraine reach tentative $5.5 billion aid deal for war-scarred country

The International Monetary Fund said on December 7 that it has reached an agreement in principle with Ukraine on a new three-year aid program worth $5.5 billion. IMF Managing Director, Kristalina Georgieva has even welcomed the deal and said that it was subject to IMF management approval. Georgieva said that she spoke with President of Ukraine Volodymyr Zelensky on a 'constructive call' where she applauded the Ukraine leader for the 'impressive progress' his government has made in the past months. 

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IMF's readiness to support

IMF Managing Director assured Zelensky about IMF's readiness to support the policy agenda by the authorities to maintain 'macro-economic' stability and 'lift the economy' to a greater level which is sustainable along with inclusive growth. Both Zelensky and Georgieva have agreed that the country's success depends 'crucially' on enhancing the rule of law and the integrity of the judiciary. In a statement made after the call with Ukrainian leader, Georgieva made a statement.

According to the official website, Georgieva said, “I was pleased to note that IMF staff has reached an agreement with the authorities on the policies to underpin a new 3-year, SDR 4 billion (about US$ 5.5 billion) arrangement under the Extended Fund Facility.”

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She also added, “The President and I agreed that Ukraine’s economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests in the economy and that it is paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions.” 

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