As a result of the Russian war of aggression, Ukraine has “urgent financial needs”; The loan will help mitigate the economic consequences of the conflict, the IMF said on Wednesday. The new IMF financing should also allow for further bilateral loans, it said.
The war will lead to a severe recession in Ukraine this year, warned IMF boss Kristalina Georgieva. In view of the destruction, the many victims and massive refugee movements, the government’s financial needs are great and urgent. “Once the war is over and a proper assessment of the damage can be made, it is likely that further major support will be needed for reconstruction,” Georgieva said.
The World Bank announced a $700 million aid package for Ukraine on Monday.
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