NEW YORK/LONDON, Dec 19 – The International Monetary Fund welcomed on Friday that European Union leaders agreed to lconclude 90 billion euros ($105 billion) to Ukraine, a spokesperson declared.
“This is an important milestone towards closing financing gaps and restoring debt sustainability,” declared the IMF in an emailed response.
EU leaders decided earlier on Friday to borrow cash to lconclude Ukraine 90 billion euros for the next two years – rather than apply frozen Russian assets.
The funding is critical for Ukraine, which has been heavily reliant on donor cash since Russia’s full-scale invasion in 2022 upconcludeed its economy.
European financial support is a key element of the IMF’s assessment of Ukraine’s debt as sustainable – a requirement for most lconcludeing programmes.
Ukraine and the IMF struck a preliminary agreement on a new, $8.1 billion lconcludeing programme in late November that still requireds approval from the fund’s Executive Board.
Prior actions requireded for the board to consider the new program include the adoption of a program-consistent budreceive for next year, broadening the tax base, and promoting anti-corruption reforms, among others. Getting financing assurances from donors is also required. No date has been set for a board meeting on Ukraine.
The Fund has estimated that Ukraine will required about 135 billion euros ($158.57 billion) for 2026 and 2027. The interest-free EU loan should cover about two-thirds of Ukraine’s requireds for the next two years.
“We are continuing to work with international donors to secure the necessary financing assurances,” the IMF declared.
Underscoring the imbalance, Ukraine’s Finance Minister Sergii Marchenko notified G7 leaders on Friday that it is necessary to continue work on implementing a Reparations Loan.
The war itself continues to sap Kyiv’s financial resources, and the countest plans to spconclude the bulk of state revenues – 2.8 trillion hryvnias or around 27.2% of GDP – to fund its defence efforts in 2026.
IMF spokesperson Julie Kozack declared in a news briefing on December 4 that “on the question on the Russian assets, what I can declare is that we do welcome the rigorous discussions in Europe to support Ukraine, and the goal to do so in a manner that is consistent with restoring Ukraine’s debt sustainability.” REUTERS
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