IMF, Ukraine reach staff-level deal on arrangement worth over $8 bln

WASHINGTON

The IMF announced that it has reached a preliminary deal with Ukraine that could unlock more than $8 billion in new financing, as the country reels from more than three years of war.

"Russia's war continues to take a heavy toll on Ukraine's people and its economy," the IMF said in a statement.

"The authorities nevertheless remain steadfast in their resolve to maintain macroeconomic stability and to restore debt sustainability and external viability," the fund added.

The latest agreement covers a set of fiscal and monetary policies to anchor a program aimed at achieving these goals.

The program is also "expected to catalyze large-scale external support to close Ukraine's financing gaps," said Gavin Gray of the IMF.

Gray had led a team that held discussions with Ukrainian authorities during Nov. 17-21, in response to their request for a new extended fund facility (EFF) arrangement.

They have since come to an agreement on an arrangement with potential access to more than $8 billion.

But this will still need to be approved by the IMF's executive board.

Ukraine has been locked in a deadly war with Russia for more than three years.

On Wednesday, the fund noted that Ukraine underwent eight successful reviews under its most recent IMF program.

"The authorities firmly believe that a new EFF will provide a strong anchor for their medium-term plans," Gray added in a statement.

He noted as well that risks to Ukraine's economy remain very high due to uncertainty surrounding the duration and intensity of the ongoing conflict — as well as the level of additional international support.