The deal between Kyiv and the Washington-based lender is a so-called staff-level agreement aimed at establishing a full lending program to unlock billions in financing next year if the government meets conditions, according to the lender’s statement on Wednesday.
The four-month program “will provide an anchor for macroeconomic policies and catalyze donor support,” Gavin Gray, who led the IMF mission, said in a statement. “Strong policy implementation would help pave the way towards a full-fledged IMF-supported program.” Russia has destroyed parts of Ukraine’s industrial base, agriculture and basic infrastructure since its invasion began in February, triggering an economic contraction of some 30% this year. That deprived the government of revenue to finance basic needs, forcing Kyiv to rely on international aid and a program of bond sales.
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