The International Monetary Fund, IMF is to give additional $1 billion as emergency aid to Ukraine to help the war ravaged country meet its urgent balance of payment needs.
In a statement, IMF describes the intervention as ”a catalytic role for future financial support from Ukraine’s creditors and donors,”.
“The scale and intensity of Russia’s war against Ukraine that started more than seven months ago have caused tremendous human suffering and economic pain…. Real GDP is projected to contract by 35 percent in 2022 relative to 2021 and financing needs remain very large.” The statement notes.”
The IMF also said Ukrainian authorities “deserve considerable credit for having maintained an important degree of macro-financial stability in these extremely challenging circumstances.”
Ukrainian President Volodymyr Zelensky, recently tweeted that the fund would be given to his country on Saturday and appreciated the IMF management for the intervention.
The World Bank had last week granted Ukraine $530 million in additional aid to “help meet some urgent needs created by Russia’s invasion.
In a statement, the bank says it had already mobilized almost $13 billion in emergency funding for Ukraine, $11 billion of which had already been disbursed.
Writing by Oluwaseyi Ajibade; Editing by Annabel Nwachukwu