International Monetary Fund approves $1.4 billion in emergency aid to Ukraine

International Monetary Fund approves .4 billion in emergency aid to Ukraine

The board of the International Monetary Fund (IMF) approved on Wednesday $1.4 billion in emergency aid to Ukraine And he warned that the war would lead to a “deep recession” in the country.

The amount approved by the Fund corresponds to the amount requested by the Government of Ukraine and It serves to mitigate “the economic impact” of the war initiated by Russia; Read the IMF statement.

“Financing needs are high, urgent and “It could increase significantly as the war continues.”It is in the note of the administrative director of the institution Kristalina Georgieva.

“The tragic loss of life, the massive influx of refugees and the massive destruction of infrastructure and productive opportunities. “They are causing serious human suffering and will lead to a deep recession this year.” warned.

The IMF assured that the Ukrainian government They “canceled” the loan program they had with the agency. It reached 2020 and of which R$2.2 billion was yet to be disbursed.

However, Ukraine “expressed its intention to cooperate with the International Monetary Fund”. Change this program to another “relevant” situation, The goal is to “rehabilitate and grow when conditions permit,” the foundation explains.

Emergency assistance is provided to Ukraine under the IMF Rapid Finance Facility, which: Allows aid to countries in urgent need No special loaner program is required for them at installation.

1.4 billion “equivalent to 50% of Ukraine’s IMF quota” And this will enable the “urgent balance of payments need” arising from the war, as well as act as a “catalyst” for financial contributions from other institutions, the statement said.

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Last Saturday, the International Monetary Fund warned that the war in Ukraine would have a “serious impact” on the global economy and He warned that countries with economic ties to Kiev and Moscow are at greater risk.

As a result of this pressure, Moldova has already demanded an increase in the debt program at the IMF and some changes And Foundation officials are currently discussing various options with the Moldovan authorities.

(EFE)

Source: La Neta Neta

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