Ukraine clinches IMF package to protect its battered economy
The IMF finalized a $15.6 billion loan, pending board approval, providing a financial lifeline for the battered Ukrainian economy. The program is intended to build “fiscal, external, price and financial stability” by raising additional funds, increasing tax collection, and eliminating monetary financing of debt.
The lifeline is especially critical as the war’s economic toll has been immense with a 30% economic contraction, interest rates over 25%, and non-performing loans averaging 38% across the financial sector. While business sentiment has stabilized after Russia’s winter offensive, the private sector has struggled as multinationals relocated to elsewhere in the region and an estimated three-quarters of companies are scaling back production.
