IMF chief to visit Ukraine amid Kyiv’s request for new aid
IMF Chief Kristalina Georgieva plans to visit Kyiv to discuss a new loan package to support Ukraine’s economy, reports Bloomberg.
The last time the IMF Managing Director visited Kyiv was in February 2023, about a year after the start of the large-scale invasion.
Now, in the fourth year of the war, she has decided to return to show support and bolster Kyiv’s ambitions for a new IMF loan package.
Why it matters
The Ukrainian government aims to secure a second IMF aid package after receiving most of the funding from the previous $15.6 billion program agreed upon in 2023.
Preliminary estimates suggest the new package could total around $8 billion, with negotiations with Kyiv officials expected to begin in November.
“Our staff remains actively engaged with the Ukrainian authorities on macroeconomic policies aimed at maintaining stability, financing essential expenditures, and restoring debt sustainability, with a view to continued IMF support,” the fund stated.
Previous experience and significance of the visit
The first loan package for Ukraine was unprecedented for the IMF, as the fund’s rules prohibit financial assistance to countries at war. It became possible only after the wealthy G7 countries agreed to cover Ukraine’s potential debt risks.
Georgieva’s visit to Kyiv, which two years ago marked the completion of the first package’s agreement, symbolizes support for continued financing to restore the economy and infrastructure damaged by the conflict.
Negotiations and terms of the new package
IMF talks with Ukrainian authorities are expected to be complex, as the fund requires guarantees from Ukraine’s allies on using part of the frozen assets of the Russian central bank to secure tens of billions of dollars in aid.
According to sources familiar with the discussions, Ukraine has increased its projected financing needs through 2027 to approximately $65 billion.
During her last visit to the UN General Assembly in September, Georgieva was among the first officials with whom President Volodymyr Zelenskyy held talks regarding support for the country.
As explained by NBU Governor Andriy Pyshnyi, the new IMF program is necessary to ensure regular inflows of external financing to Ukraine.
It should be noted that the International Monetary Fund has also revised its forecast for the US dollar to hryvnia exchange rate through 2030.
