Amidst the ongoing economic crisis in Ukraine, the International Monetary Fund (IMF) has approved a $15.6 billion financial aid package to the country, said the officials in an official statement.

According to the IMF, the Russian invasion has devastated Ukraine’s economy; it has caused activity by around 30 per cent last year. This devastation has led to a major dip in its capital stock and fueled poverty.

IMF provides financial aid to Ukraine

As per the reports, the fund’s board has extended the fund facility program to 48 months, worth approx $15.6 billion.

In a press conference, the fund’s body said that It forms the IMF’s portion of a $115 billion overall support package comprised of debt relief, grants and loans by multilateral and bilateral institutions.

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Key focus of this programme

The key focus of this 4-year programme is “anchor macroeconomic and financial stability as well as to undertake critical structural reforms as the war continues,” IMF deputy managing director Gita Gopinath said in a statement.

Out of the total amount approved, almost $2.7 billion is being made available to Ukraine immediately, with the rest of the funds due to be released over the next four years.

Moreover, Gita Gopinath said that the more “ambitious structural reforms” to support sustained growth and post-war reconstruction, as well as facilitate Ukraine’s path to EU accession among other goals, will be left until active combat ends.

Further, the programme also includes additional guarantees from some IMF members if active combat continues beyond the current estimate of mid-2024.

If the current conflict were to continue into 2025, it would raise Ukraine’s financial needs from $115 billion to around $140 billion, said the IMF.

IMF Approves Financial Aid Worth $15.6 Billion To Ukraine Amidst Economic Crisis