IMF agrees to $1.1 billion aid package for Ukraine

The International Monetary Fund (IMF) has tentatively agreed to provide Ukraine with a $1.1 billion financial tranche, pending approval by the IMF Executive Board in the coming weeks.

Negotiations leading up to this agreement were described as challenging, but the IMF praised Ukraine for its adept policy adjustments and the resilience of its households and businesses, Caliber.Az reports via foreign media sources.

The audit revealed that as of late June, Kyiv had met all quantitative performance criteria and successfully negotiated reforms to sustain macroeconomic stability. Despite this progress, the IMF cautioned that Ukraine faces significant risks, particularly due to ongoing conflicts and energy sector issues.

The IMF projects a 3% GDP growth for Ukraine in 2024, though this forecast has been tempered by increased risks from energy infrastructure attacks. The growth estimate for the following year is between 2.5% and 3.5%.

Additionally, Ukrainian Prime Minister Denis Shmyhal announced plans for 2025 to allocate all tax revenues to defence, with remaining budgetary needs expected to be met through external funding sources.