IMF Says Reached Staff-Level Agreement on $15.6 Billion Loan Program for Ukraine
WASHINGTON (Sputnik) - The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement on a $15.6 billion loan program for Ukraine.
"I am pleased to announce that the IMF team has reached a staff-level agreement with the Ukrainian authorities on a four-year IMF-supported program, with access requested of SDR 11.6 billion (US$15.6 billion), or 577% of Ukraine’s quota," IMF delegation chief Gavin Gray said in a statement on Tuesday.
The agreement is subject to approval by the IMF executive board, which is expected to meet in the coming weeks to consider it.
Gray said the IMF expects to see a gradual economic recovery in Ukraine, noting that economic activity is improving in many sectors, including in critical infrastructure.
However, developing a single baseline outlook scenario under exceptionally high uncertainty is exceedingly challenging, as a range of outcomes are plausible, Gray said.
"On that basis, staff currently sees real GDP growth for 2023 ranging from -3 to +1 percent," Gray said, adding that the IMF-supported program is based on a two-phased approach.
The first phase may take 12-18 months to improve fiscal, external, price and financial stability by bolstering revenue mobilization, eliminating monetary financing and aiming at net positive financing from domestic debt markets.
The second phase would shift focus to more expansive reforms to entrench macroeconomic stability, support recovery and early reconstruction, and enhance resilience and higher long-term growth, including in the context of Ukraine’s EU accession goals,.
US Treasury Secretary Janet Yellen issued a separate statement in which she welcomed the IMF announcement. The agreement came about as a result of long-term collaborative work between the IMF and the Ukrainian government, Yellen added.