IMF approves $1.4bn emergency support for Ukraine

The board of the International Monetary Fund (IMF) has approved the disbursement of 1.4 billion dollars in emergency financing for Ukraine amid Russia’s military invasion.

“This disbursement will help meet the urgent balance of payment needs arising from the impacts of the ongoing war.

“It will provide critical support in the short term while playing a catalytic role for financing from other partners,” the IMF said in a statement.

IMF’s Managing Director, Kristalina Georgieva, said the Russian invasion of Ukraine would lead to a “deep recession this year.”

“Financing needs are large, urgent and could rise significantly as the war continues,” she said, praising the Ukrainian authorities’ emergency policy response.

Georgieva said the financial support should help fill the financing gap and mitigate the economic impacts of the war.

“Once the war is over and a proper damage assessment can be performed, additional large support is likely to be needed to support reconstruction efforts,” she added.