The International Monetary Fund is considering a multi-year aid package for Ukraine worth $16 billion.
This was reported to Bloomberg by sources familiar with the matter.
The successful implementation of this program will depend on several conditions, including the approval of the G7 countries, donors and creditors of Ukraine. The plan would also require changes to the IMFʼs lending rules to allow the fund to lend to Ukraine. The Kyiv government will need to commit to a number of reforms and successfully complete the four-month IMF program approved last year.
If approved, the $14 billion to $16 billion program will run for three to four years. It will provide for the payment of 5 to 7 billion in the first year.
Bloombergʼs interlocutors hope that the plan will be agreed upon by the end of March, and the first tranche will arrive in the best case as early as April. It is also expected that this will help to increase the financial support of Ukraine from public and private creditors.
- On December 14, 2022, Ukraine received the third and last tranche within the eighth macro-financial assistance program of the European Union. The total funding under this program was €5 billion. Ukraine received the first tranche of €2 billion in October, the second — €2.5 billion — in November, and the third — €500 million — in December.
- On December 16, 2022, the European Union finally approved the decision to allocate €18 billion in macro-financial assistance to Ukraine. Funds will be received during 2023.
- On January 17, the European Union announced the provision of the first tranche of €3 billion macro-financial assistance to Ukraine.