The IMF’s executive board approved a long-delayed $700m disbursement to Ukraine on Monday, propping up the war-torn country amid fears that Russia was plotting a deeper invasion.
The newly arriving funds mark a second tranche from a $5bn Stand-By Arrangement programme agreed in the spring of 2020 to help Ukraine cope with the pandemic. It follows a $2.7bn IMF allocation of special drawing rights (SDR) extended to Ukraine this summer, as well as €600m in EU financing provided last month.
“Ukraine’s IMF-supported economic programme aims to help the authorities address the effects of the Covid-19 shock, sustain the economic recovery, and move ahead on important structural reforms to reduce key vulnerabilities,” the fund said late on Monday.