IMF okays multi-donor Administered Account for Ukraine as Russian invasion enters day 45

Amid the ongoing war between Russia and Ukraine, the International Monetary Fund's Executive Board has approved the establishment of a Multi-Donor Administered Account for Ukraine. The account will provide donors with a "secure vehicle to direct financial assistance to Ukraine," the International Monetary Fund said on Friday. The IMF took this decision at the request of several member countries and the Executive Board of the International Monetary Fund (IMF).

According to the press release issued by the IMF Communication Department, "the Canadian government has proposed up to CAD 1 billion in their recent federal budget to be disbursed to Ukraine through the Administered Account, and the account is available for use by any other members, as well as intergovernmental agencies and organizations, who wish to use it as a vehicle to provide financial assistance to Ukraine."

IMF approves multi-donor Administered Account for Ukraine

Notably, the administered account aims to channel donor resources in the form of grants and loans to assist Ukraine in balancing and compensating for the ongoing crisis and helping normalize its economy. Donors will benefit from the IMF's tested infrastructure to quickly deliver authenticated payments. The account would receive loan or grant resources from donors in either reserve currencies or SDRs and disburse these resources into Ukraine's SDR account at the IMF, it said.

It is pertinent to mention here that the approval of the administered account comes after the Board's approval March 9 approval for a US $1.4 billion disbursements to war-ravaged Ukraine under the Rapid Financing Instrument to assist Ukraine in fulfilling urgent financing needs and mitigate the economic impact of the war. The ongoing war in Ukraine is resulting in massive human suffering with Russia's reluctance to stop the attack.

Russia Ukraine war

As the Russia-Ukraine conflict entered its 45th day with Russian forces continuously attacking neighbouring Ukraine and western countries uniting to stand against Russia, the international process for food commodities, including grains and vegetables, has reached all-time highs. Meanwhile, Ukraine has claimed that it has killed more than 19,000 Russian troops along with 705 war tanks. Furthermore, Ukraine has also raised demands for the exclusion of Russia from the Organization for Security and Co-operation in Europe (OSCE), which is the world's largest regional security-oriented intergovernmental organisation with observer status at the United Nations. 

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