The International Monetary Fund (IMF) has announced that its executive board has approved a Ukraine loan program worth $15.6 billion (KES 2.07 trillion) over four years.
This forms part of a larger global package of $115 billion (Ksh. 15.2 trillion) aimed at bolstering Ukraine’s economy.
To promote long-term growth in the context of post-war reconstruction and Ukraine’s path to EU accession, Ukraine’s Extended Fund Facility (EFF) -supported program seeks to anchor policies that sustain fiscal, external, price, and financial stability while simultaneously enhancing governance and strengthening institutions.
Furthermore, the approval of the EFF is expected to mobilize large-scale concessional financing from Ukraine’s international donors and partners.
This financing will help resolve Ukraine’s balance of payments problem and attain medium-term external viability, as well as restore debt sustainability on a forward-looking basis in both a baseline and downside scenario.
The program will be implemented in two phases with the first phase focusing on budget implementation and revenue mobilization.
The second phase will focus on structural reforms to entrench macroeconomic stability, support the recovery and early post-war reconstruction, and enhance resilience and higher long-term growth.
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