The deal follows extensive negotiations and awaits final approval from the IMF's executive board, expected in the coming weeks.
This assistance is part of a broader $15.6 billion, four-year program, which plays a crucial role in international support for Ukraine as it faces its third winter of a full-scale Russian invasion. Gavin Gray, head of the IMF mission in Kyiv, emphasized the continued challenges from Russia's war but acknowledged Ukraine's resilience in maintaining macroeconomic stability.
The IMF also highlighted ongoing risks to Ukraine's economy, such as slow growth due to labor market disruptions and Russian attacks on energy infrastructure. Ukraine, which spends 60% of its budget on defense, relies heavily on Western financial aid for public sector salaries, pensions, and humanitarian efforts.
Since the start of the war, Ukraine has received approximately $98 billion in financial aid from Western partners. The IMF urged Ukraine to meet budgetary constraints and find ways to boost domestic revenue, including tax reforms already underway.
