Ukraine is in consultations with the International Monetary Fund to seal until year-end an agreement for a $15-20-billion loan to help restore its war-torn economy, the National Bank Governor Kyrylo Shevchenko has told Reuters.
Kyiv has already submitted its request to the IMF and is now in consultation with the fund over the new financing.
The governor hopes Ukraine would receive as much as $20 billion over two or three years through a Stand-By Arrangement (SBA) or an Extended Fund Facility (EFF).
Finance experts believe that, battered by Russia’s invasion, Ukraine’s economy faces a 35-45% economic contraction in 2022 and a monthly fiscal shortfall of $5 billion. Therefore, the nation is heavily reliant on foreign financing from its Western partners.
The central bank chief said a new program should provide measures that would help stabilize the economy. That could ensure a return to pre-war conditions, such as a flexible exchange rate, no limits on the currency market, decreasing non-performing loans in the banking sector and a balanced fiscal policy. (Ukrinform/Business World Magazine)
