IMF "Ukraine's Growth Rate Upgraded to 1-3% This Year... Loan Priority Payment"

The International Monetary Fund (IMF) announced that it expects Ukraine's economic outlook this year to be more positive than previously anticipated and has decided to disburse part of the agreed loans to Ukraine in advance.

On the 30th (local time), the IMF stated, "We and the Ukrainian authorities have reached a staff-level agreement through the first review of the Extended Fund Facility (EFF)," adding, "All quantitative performance criteria as of the end of last month and structural benchmarks for this month have been met."

IMF [Image source=Reuters Yonhap News]

The preliminary agreed loan amount to be disbursed to Ukraine on this day is $900 million (approximately 1.1 trillion KRW). Earlier, in March, the IMF reached a staff-level agreement with the Ukrainian government to provide loans totaling $15.6 billion over four years.

This is the first time in the IMF's 77-year history that it has provided loans to a country at war. The IMF had previously assessed that countries with high uncertainty due to conflicts lacked the capacity to repay loans and therefore did not provide regular loans. However, in March, the IMF amended its regulations to exceptionally assist countries facing high uncertainty.

The IMF decided to disburse part of the agreed loan funds in advance after Ukraine's government promised reform measures and the economic outlook was revised to be more positive than before. The IMF expects Ukraine to achieve a strong economic recovery this year as it gradually adapts to the war situation. The growth forecast for this year was also revised upward from -3% to 1% to a range of 1% to 3%.

The IMF stated, "Ukraine's energy system is recovering from the shocks caused by missile attacks, the foreign exchange market is stabilizing, and inflation is declining, leading to a strong rebound in economic activity in the first quarter," adding, "The Ukrainian economy is showing remarkable resilience, and recent economic conditions suggest a gradual recovery this year."

To receive the full amount of the loan agreed upon in March, Ukraine must meet various conditions, including increasing revenue, maintaining exchange rate stability, and preserving the independence of the central bank.

This content was produced with the assistance of AI translation services.