IMF may suspend financing for Ukraine: reasons given
МВФ
The International Monetary Fund may suspend financial support for Ukraine due to Belgium’s refusal to support a 140 billion euro reparations loan from the European Union. This could affect the country’s economic stability and its investment climate.
This is reported byPolitico .
It is noted that European supporters of the loan believe that assistance to Ukraine from the IMF is crucial. At the same time, they fear that there is little time left to convince the institution of the need to allocate a new loan to Kyiv.
The IMF is considering providing Ukraine with $8 billion in financing over three years. However, the funds are directly dependent on the EU’s decision to arrange its own loan of €140 billion using frozen Russian assets held in Belgium.
Representatives of the European Commission and diplomats from the three member states emphasize that concluding this agreement could convince the IMF of Ukraine’s financial viability – this is a prerequisite for obtaining further financing.
However, Belgium’s stance against a reparations loan has reduced the chances of reaching an agreement before the December IMF meeting. Fund experts are expected to visit Kyiv in November to discuss a financing program for the next three years.
“We faced a timing problem,” said an EU representative.
The next meeting of EU leaders is scheduled for December 18 and 19. Approval of an IMF program, even a small one, is an important signal to investors about Ukraine’s financial stability and its progress in reforms.
It was previously reported that the International Monetary Fund is putting pressure on the National Bank of Ukraine , calling for a controlled devaluation of the hryvnia — despite the fact that the country continues to suffer from the war.
As a reminder, the IMF predicted the population of Ukraine in the event of an end to the war . By the way, the International Monetary Fund believes that Ukraine will need $10–20 billion more in financing by 2027 than the government currently anticipates .
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