The head of Ukraine’s central bank told Reuters that he wants to agree a $15 billion to $20 billion loan program with the International Monetary Fund (IMF) before the end of the year to help Ukraine sustain its war-torn economy, said Kyrylo Shevchenko.
With the Russian invasion that began on February 24, Ukraine faces an economic contraction of between 35% and 45% in 2022, a monthly fiscal deficit of $5 billion, and is heavily dependent on external financing from its Western partners.
Speaking during his visit to London, Shevchenko said he hoped to reach agreement on a swap line “within weeks” with the Bank of England, although he did not specify the amount.
The President said that Kiev has already submitted its application to the IMF and is now in consultation with the fund on new financing, which it expects to receive up to $20 billion in two or three years.
For the first time, Ukraine has set a figure for the new financing it needs from the lender in Washington.
The $20 billion program would be the second largest IMF loan currently active, after aid to Argentina.
“The IMF has always acted as Ukraine’s partner during the war,” Shevchenko told Reuters. “My hope is to start the program this year.”
The central bank chief said a new program should provide measures to help stabilize the economy. This could return to pre-war conditions such as a flexible exchange rate, no cap on the foreign exchange market, a reduction in bad loans in the banking sector, and a balanced fiscal policy.
The last IMF loan to Ukraine was $1.4 billion in emergency financial support in March – the equivalent of 50% of the country’s share in the fund.
source: Noticias
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