WHILE the United States remains undecided on its aid package for Ukraine, the International Monetary Fund (IMF) has approved an $880 million disbursement to Ukraine, providing critical financial assistance to the war-torn country.
The IMF executive board sanctioned the initial tranche of over $5.3 billion earmarked for release to Kyiv this year.
This support is part of a broader four-year loan program totaling $15.6 billion, initiated last year.
Despite enduring ongoing challenges from the prolonged conflict with Russia, Ukraine continues to receive essential backing from the IMF.
But uncertainties loom over the sustainability of the program due to the delay in US aid.
Ukraine is facing a challenging scenario as it awaits over $61 billion in aid from the US, including military assistance.
The delays in US Congress—which is due to Republican demands for reforms in US immigration policy, have left Ukraine in such a position, as it is heavily reliant on international aid for financial and security needs.
Gavin Gray, the IMF’s Ukraine mission chief, stressed the significance of continued support from external partners, warning that Ukraine’s hard-earned macroeconomic stabilization gains could be at risk without these resources.
The latest disbursement from the IMF is expected to bolster Ukraine’s international reserves, exceeding $40 billion.
This represents a historic high for the nation’s financial reserves, with additional foreign aid of around $10 billion anticipated by May, including the IMF disbursement.
Meanwhile, the IMF is poised to review another disbursement for Ukraine in mid-June, contingent upon the Ukrainian government meeting specified conditions. This could potentially unlock more than $2.2 billion in the next installment of financial assistance for the country.
