IMF says its board approves $1.3 bln in emergency funding for Ukraine

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The International Monetary Fund said on Friday its executive board on Friday approved Ukraine’s request for $1.3 billion in additional emergency funding to help sustain its economy as it battles Russia’s invasion.

The funds will come from a new emergency lending programme to address food shortages approved by the IMF board last month.

The board approved the funds – which came on top of $1.4 billion the IMF provided to Ukraine after the Russian invasion – following a meeting that lasted over 100 minutes, one source familiar with the decision said.

The source said Ukraine has received sufficient financial assurances from its global partners to meet the IMF’s debt sustainability requirements in order to qualify for further emergency funds.

IMF officials are due to meet with Ukrainian authorities in Washington next week during the annual meetings of the IMF and World Bank.

IMF staff will then travel to Vienna the following week for technical discussions with Ukrainian authorities about Ukraine’s budget plans and monetary policies, several sources familiar with the plans said.

IMF officials have praised the Ukrainian government and its central bank for their management of the economic shocks caused by Russia’s invasion of the country in February. Ukrainian officials are pressing for additional, non-emergency funds under a full-fledged IMF lending programme, but such a programme could come later.