IMF agrees Ukraine needs around $5bn a month in aid

The International Monetary Fund (IMF) agrees with the authorities in Kyiv that Ukraine needs financial assistance at this stage in the order of $5 billion per month.

According to TASS, this was announced on Thursday by IMF Managing Director Kristalina Georgieva.

“$5 billion is an estimate by the Ministry of Finance, and more broadly by the financial authorities of Ukraine, regarding where their monthly financial gap lies over the next few months. Our staff has worked to verify this amount. In general, we are talking about the correct order of magnitude. They confirmed that indeed, in the foreseeable future, in the next couple of months, such an amount [of financial assistance] will be required to ensure that Ukraine fulfills its functions, such as paying salaries, pensions, providing social services, supporting internally displaced persons and, of course, covering expenses which go beyond the normal spending related to the war,” said Georgieva. She spoke at a press conference during the spring session of the governing bodies of the IMF and the World Bank.

“The composition (of cash) has yet to be determined to fill this gap. We are of the view that, as far as possible, this should be provided through grants and not loans. Since in the near future, Ukraine will have dramatically reduced revenues (budget) and even after the war will face a very large bill related to restoration work,” said the head of the fund.

According to her, Ukraine is doing an "excellent job" in the field of macroeconomic policy and financial stability. “They do have strong (foreign exchange) reserves - about $29 billion in reserves. And they would like to defend their position in the reserves so that they can continue to function as an economy they can rely on - in the eyes of their people, the international community and the business community,” Georgieva said.